Senior citizens: Strike a balance between tax saving and liquidity

They must also maximise the utilisation of the higher deductions available to them

The government offers several benefits to senior (60-80 years of age) and very senior citizens (above 80 years) in the matter of income-tax (I-T). Such benefits come either in the form of enhanced deductions or relaxations in tax-filing procedures.

Senior citizens need to strike a proper balance between their tax and financial planning. Suresh Surana, founder, RSM India, says, “They should make tax-saving investments after taking into consideration their liquidity needs, the lock-in period of an investment, their requirement of funds for medical and other emergencies, etc.”

Higher basic exemption limit: Senior citizens’ income of up to Rs 3 lakh