Tax saving schemes for Senior Citizens

Tax saving schemes for Senior Citizens

Latest Fixed deposit Interest rate data last Updated on April 5th, 2013 Assumptions: Rs. 100000 invested for 5 yearsfor Senior Citizens (interest compounded quarterly).As can be seen from the table below, you can potentially earn Rs. 7123 more (the difference in maturity value for bank offering highest vs lowest interest rate). This table shows the best fixed deposit (Best FD)at the top. This table shows the best fixed deposit (Best FD) at the top. It can be utilized to increase your returns without increasing the risk. Your entire sum including Saving Bank balance, RD, FD upto a maximum of Rs 1 Lac is insured in each of the banks by DICGC. These schemes are popularly known as Tax Saving Schemes, Tax Savings Plans, Tax saver plans, Tax Saving account, Tax Benefit schemes, Tax Saver Plans etc.Note that the maximum deposit allowed per financial year in on F.Y. u/s 80c of the IT act. All investments in tax saving deposits have a lock in period of 5 years. The interest earned on these deposits is taxable. There are other alternatives such as equity linked saving schemes (ELSS) mutual funds. ELSS investment has a lock-in period of three years. They do not assure any returns, their returns on the performance of the mutual fund. If the fund makes surplus, these funds typically give dividends, which currently is tax free as per Indian IT rules in the hands of the investor. Bank Duration Rate(%) Investment(Rs.) Maturity(Rs.) Axis Bank Axis Tax Saver 9.75 100000 159229 State Bank of Mysore SBM TaxSaver Scheme 9.60 100000 158144 State Bank of Hyderabad SBH Tax Saver 5 YEARS to less than 8 years 9.50 100000 157423 Bank of Baroda BOB Tax Saver 9.50 100000 157423 Indian Overseas Bank IOB Tax Saver 9.50 100000 157423 Andhra Bank AB Tax Saver 9.50 100000 157423 Dena Bank Dena Maha Tax Bachat Yojana 9.50 100000 157423 City Union Bank CUB Tax Saver Scheme 9.50 100000 157423 Karnataka Bank KBL Tax Planner 9.50 100000 157423 United Bank of India United Tax Saving Deposit Scheme 9.25 100000 155634 State Bank of Bikaner and Jaipur SBBJ TAX SAVER TERM DEPOSIT SCHEME 9.25 100000 155634 Bank of Maharashtra Tax Saving Scheme 9.25 100000 155634 IndusInd Bank Indus Tax Saver Scheme - 5 years 9.25 100000 155634 The Lakshmi Vilas Bank Lakshmi Tax Saver Deposit 9.25 100000 155634 ICICI Bank Tax Saver FD 80C (5 year) Upto Rs. 1 lac 9.25 100000 155634 State Bank of India SBI Tax Saving Scheme 9.00 100000 153862 The Karur Vysya Bank Limited KVB to TaxShield 9.00 100000 153862 ING Vysya Bank Ing Tax Saver 9.00 100000 153862 Allahabad Bank Allahabad Bank Tax Benefit Term Deposit Scheme 8.75 100000 152105