Tax saving is one of the key factors when it comes to savings and investments for middle-class taxpayers and senior citizens. As regards senior citizens, they aim for financial security by investing their money primarily in non-market-linked products, which give them a sense of safety in times of volatile stock markets. Another key aspect of money management by senior citizens is that their income sources shrink once they retire from their jobs, prompting them to look for the best saving options available.
Good tax planning not only minimises tax liability but also helps in achieving financial objectives. Under the Old Tax Regime, the government still offers multiple exemptions and deductions for taxpayers, including senior citizens.
In this story, we will explore the best tax-saving instruments available for senior citizens in 2025. These options also help seniors build a strong retirement plan and live their golden years stress-free.
Also Read Senior citizen tax relief: Exemption limit may rise to Rs 5 lakh, ZERO tax on income up to Rs 10 lakh under Old Tax Regime! Budget 2025: Individuals earning up to Rs 15 lakh a year may get a big tax relief, feel experts Will senior citizens above 75 no longer have to pay taxes? Govt clarifies Tax Tips for 2025: THIS smart strategy can lower your long-term capital gains tax Best tax-saving options for senior citizens 1) ELSS mutual funds
ELSS funds or equity-linked savings schemes, have emerged as one of the best options for investors who look for investment tools that save tax.
As investing in mutual funds comes with the benefit of both inflation-beating returns and tax savings, ELSS is a great option for senior citizens as well, provided the investment is done strategically in the right funds.
ELSS plans, which are tax-saving mutual funds under Section 80C of the Income Tax Act, 1961, can help save on tax significantly. Investments up to Rs 1.5 lakh in ELSS funds are exempt. One can invest in it through SIP or lump sum.
However, as the name suggests, ELSS funds primarily invest in equities, so they carry a little risk. But overall, ELSS funds not only save tax but also help senior citizens grow their capital.
» Read More
