Senior Citizens FD Schemes: Tax-Saving FDs for Seniors! Unlock Thousands in Tax Savings with This Scheme, Details Here

Senior Citizens FD Schemes: Concerns regarding tax savings are common. Where should we invest to reduce our taxes? There is a lot of anxiety among senior citizens in particular about how to save taxes (tax-saving). Today, we'll discuss the best way for seniors to save taxes and potentially save thousands of dollars.

Tax-saving Benefits for Seniors

Fixed deposits that save you money on taxes are eligible for savings under Section 80C of the Income Tax Act of 1961. This portion offers a savings of Rs 1.5 lakh. Seniors will need to make financial investments in tax-saving fixed deposits to cover this.

Under Section 80C of the Income Tax, senior folks and those 60 years of age or above can save up to Rs 1.5 lakh in taxes. In addition, each financial year you are eligible to deduct up to Rs 50,000. The tax deduction on the interest earned on FD is likewise applicable.

Investment Limit in Tax-saving FDs

The maximum amount you can invest in a Tax Saving Fixed Deposit is Rs 1.5 lakh. To take advantage of the full exemption in such a scenario, split your money into smaller portions and invest it in tax-saving mutual funds (FDs).

Tax-saving FD Duration

A tax-saving FD has a five-year term. These FDs reach maturity every five years. According to experts, this is a type of cumulative fixed deposit where you would receive interest when the account matures after five years. The nominee is free to take the money out prior to maturity if the FD holder passes away during the lock-in term.