1. A regular income stream can be generated from SCSS and POMIS interest for Senior Citizens (i.e. Residents aged 60 years or above) as they are eligible for exemption of interest income from Bank / Post Office deposits (Saving accounts / Time deposits / RD accounts) upto 50,000/- under Section 80TTB.
2. In fact, they can utilize both PO instruments fully if the total interest income falls below the total taxable income.
3. 5-yr Post Office SCSS deposit can be upto 15 lakh max. in own name, and another 15 lakh max. in a joint account with spouse as the first holder, totalling to 30 lakh max.
4. SCSS offers:-
a) Sec 80C tax benefit,
b) Sovereign safety for total deposit,
c) Unchanged interest rate once purchased,
d) Sec 80TTB tax benefit on interest,
e) TDS only above 50,000 annual interest.
5. 5-yr Post Office MIS deposit can be upto 4.5 lakh max. in an individual account or 9 lakh max. in a joint account.
6. For Senior Citizens, POMIS offers:-
a) Sovereign safety for total deposit,
b) Sec 80TTB tax benefit on interest,
c) No TDS.
7. Bank Fixed Deposit can be utilized as an emergency fund for short-term contingencies.
8. For Senior Citizens, Bank FD offers:-
a) Sec 80C benefit - for 5-yr Tax Saver FD only,
b) DICGC safety cover upto 1 lakh deposit/interest,
c) Sec 80TTB tax benefit on interest.
9. Liquid Debt Fund can also be utilized as an emergency fund for meeting contingencies, as it offers:-
a) High liquidity,
b) Inflation-efficient return potential,
c) No exit load.
10. A Senior Citizen can also invest appropriately in Long Duration Debt Fund, Gilt Debt Fund, Hybrid Fund, ELSS Fund or an Equity Fund, albeit risk-prone, to avail of:-
a) Sec 80C benefit - for ELSS Fund only,
b) Inflation-efficient return potential,
c) Long-term growth potential.
2. In fact, they can utilize both PO instruments fully if the total interest income falls below the total taxable income.
3. 5-yr Post Office SCSS deposit can be upto 15 lakh max. in own name, and another 15 lakh max. in a joint account with spouse as the first holder, totalling to 30 lakh max.
4. SCSS offers:-
a) Sec 80C tax benefit,
b) Sovereign safety for total deposit,
c) Unchanged interest rate once purchased,
d) Sec 80TTB tax benefit on interest,
e) TDS only above 50,000 annual interest.
5. 5-yr Post Office MIS deposit can be upto 4.5 lakh max. in an individual account or 9 lakh max. in a joint account.
6. For Senior Citizens, POMIS offers:-
a) Sovereign safety for total deposit,
b) Sec 80TTB tax benefit on interest,
c) No TDS.
7. Bank Fixed Deposit can be utilized as an emergency fund for short-term contingencies.
8. For Senior Citizens, Bank FD offers:-
a) Sec 80C benefit - for 5-yr Tax Saver FD only,
b) DICGC safety cover upto 1 lakh deposit/interest,
c) Sec 80TTB tax benefit on interest.
9. Liquid Debt Fund can also be utilized as an emergency fund for meeting contingencies, as it offers:-
a) High liquidity,
b) Inflation-efficient return potential,
c) No exit load.
10. A Senior Citizen can also invest appropriately in Long Duration Debt Fund, Gilt Debt Fund, Hybrid Fund, ELSS Fund or an Equity Fund, albeit risk-prone, to avail of:-
a) Sec 80C benefit - for ELSS Fund only,
b) Inflation-efficient return potential,
c) Long-term growth potential.