Investment option for senior citizens
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He gets pension every month and house rent so monthly expenses are covered.
also He has about 10 lakh which is in Fd., this is giving interest of around 80k or so per year.
As we know new tax regime , tax is exempted till 7 lakh.
After calculating his total income is around 7.6 lakh , out of which interest is 80k +, and due to this additional interest now he has to pay around 30k tax. but it could have been '0' if this interest was not there.
So, he is looking for an safe alternative to fd from this year to save tax.. where he could invest that 10 lakh, partly on fully both are fine. he is not planning to use that amount atleast for 3+ years..
Any suggestions are welcome
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is it applicable for new tax regime also ?
Please let the 60+ be safe and pay that 30K for which small tax:) i.e 10% which is just Rs.3000 tax only
FD is safe for senior citizens:) they wont check news and stuffs, so better let them just pay that small tax and keep their total amount safe in FD
dont divert their funds to RISKY ASSETS (because they wont check news or learn new things)
My humble request pay that 3000 and let the uncle be safe in FD as he already 60+
I agree with ur point to be safe in fd's.
btw tax itself is 30k here not 3k. and thats not small amount..
JFYI, once income exceeds 7 lakh , tax is calculated for entire income above 3 lakh.. not on just that extra amount after 7 lakh.
Need one info for better answer - how much is the rental income?
What are the sources of income? And how much?
The best solution is switching to old regime and claiming deductions.
rental : 4 lakh
no other sources , just fd and saving account interest.
put the whole amount in any flexi cap fund don’t withdraw it untill needed so no tax because the amount is still in demat account and in 5-10 years that 10 lakh will give another 10 lakh and then there is no harm to give 10percent LTCG on the profit which will be 1 lakh if 10 lakh is the profit or put 2 lakh in ELSS and 7 lakh in flexi for tax benefits.
Put money in Equity Arbitrage fund.. low risk 7-9% return..
Equity tax will be 10% when redeemed after an year...That too till 1Lac it will be exempt
Thanks, this looks like a good option 
ETF is best option
There are long term fixed interest Tax Free Bonds (interest is tax exempt) available in secondary market issued by large infrastructure financing organizations. Most of them were issued 10-15 years back with a maturity period of 20-30 years. However, as the interest rate is higher than the present market, they are normally sold at a premium of 10-20% on face value. The premium will be one time loss. But the annual interest will be tax free and that too higher than the market rate.
15G/H?