8 Best Tax-Saving Instruments For Senior Citizens

Outlook Money

Senior Citizens Savings Scheme (SCSS)

SCSS is a government-backed savings scheme that offers higher interest rates and tax benefits.


Fixed Deposits (FDs)

Senior citizens can benefit from higher interest rates on FDs offered by banks.


Post Office Monthly Income Scheme (POMIS)

It is a low-risk investment option that offers regular monthly income.

Low Risk Assets

ELSS Mutual Funds

Equity-linked savings schemes (ELSS) invest in equity instruments with a 3-year lock-in to generate return; they also offer tax benefits.

Mutual Funds

Public Provident Fund (PPF)

PPF offers higher interest rates and tax benefits, with a lock-in period of 15 years.

Provident Fund

National Pension System (NPS)

Senior citizens can invest in NPS and claim tax benefits under Section 80CCD(1) and 80CCD (1B).


Health Insurance

Premiums paid for health insurance are eligible for tax deductions under Section 80D.

Health Insurance

Atal Pension Yojana (APY)

APY is a government pension scheme that offers regular income after retirement.

Compiled by Avijit Gupta.