1. For a senior citizen, if his current corpus is in FD/flexi-deposit linked with his savings account, he can invest in equity/hybrid funds of his choice directly in a systematic manner.
2. This is because there wouldn't be much difference in income generated by shifting his money into a liquid fund first, or directly using his bank accounts to invest in 1-3 years.
3. In fact, any income during redemption from a liquid fund during this period would be termed short-term capital gains in his hands and taxed as per his income slab (at 20% after indexation).
4. On the other hand, the interest income from his bank accounts will enjoy tax exemption up to 50,000 (along with his other bank and post office interest) u/s 80TTB being 60 years old.
2. This is because there wouldn't be much difference in income generated by shifting his money into a liquid fund first, or directly using his bank accounts to invest in 1-3 years.
3. In fact, any income during redemption from a liquid fund during this period would be termed short-term capital gains in his hands and taxed as per his income slab (at 20% after indexation).
4. On the other hand, the interest income from his bank accounts will enjoy tax exemption up to 50,000 (along with his other bank and post office interest) u/s 80TTB being 60 years old.