Mukesh Patel.in
practical tax & investment planning online
international tax expert / columnist / author / speaker

TOP SAVINGS CHOICE FOR SENIORS!

SCSS gets thumbs up on counts of security, return, tax saving & liquidity! 

            The Senior Citizens Savings Scheme (SCSS) has opened up a good investment opportunity for Senior Citizens desirous of making a secured investment of upto Rs.15,00,000 earning a reasonable return of 9.30% per annum (9% per annum till 31st March, 2012). With effect from F.Y. 2007-08, SCSS also having been notified as an eligible deduction for purposes of Section 80C, investment under this scheme has become even more attractive. 

INVESTMENT HIGHLIGHTS

            The Senior Citizens Savings Scheme permits investment for all individuals who have attained the age of 60 years or above.  Moreover, as a special case, individuals in the age group 55 to 60 years, who have retired under a Voluntary Retirement Scheme (VRS), have also been permitted to invest in the Scheme, subject to the condition that the Deposit Account is opened by them within three months of the date of their retirement and a Certificate from their employer is attached in this regard.

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LIFE IN FORWARD GEAR WITH REVERSE MORTGAGE!

Needy Senior Citizens can raise Funds against their House Without any pressure for Sale or concern for Borrowing

          Chinubhai Raval, a senior citizen aged 70, is living in his house at Ahmedabad, the present market value of which is Rs.25,00,000. Since their children have neglected them, the Raval couple is all on their own, having scarce financial resources to maintain even a decent livelihood. Their grave concern and dilemma is that if they opt to sell their house to raise funds, they are rendered homeless, and if they go for a normal borrowing against the mortgage of their house, they may just not be able to repay the installments of principal and interest.

          The ‘Reverse Mortgage Scheme’ introduced by Banks and Housing Finance Institutions provides a perfect avenue to the Raval couple and many other senior citizens to extract value out of their property without selling it off. Going by the standard norms on the subject, Shri Raval in his case can expect around Rs.10,00,000 as a single payment loan or Rs.5,000 as monthly advance for a 15 year term. (more…)

STAR INVESTMENT FOR SENIORS

Senior Citizens Savings Scheme Scores High On Tests Of Security, Return, Tax Saving & Liquidity

A secured investment, offering a reasonable return of 9% per annum (payable on quarterly basis), assuring premature encashment in case of need and enjoying the added benefit of deduction under Section 80C, have made the Senior Citizens Savings Scheme (SCSS) a popular choice of the elderly for catering to their regular income needs.

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