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Tax Free Bonds For Senior Citizen
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Low risk. Since the government entities issue these bonds, the chances of default on principal and interest payments are relatively very low. The benefits of tax-free bonds include capital protection and predictable half-earnings and annual returns. Issuance and transaction. Tax-free bonds can be held in either demat or physical form.
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However, here are some of the bonds issued by a government or the investment plans that invest in government bonds that a senior citizen can prefer. 1. RBI Floating Rate Savings Bonds - RBIs floating rate Savings bonds are issued by Government & come with a tenure of 7 years. There is no age cap or maximum amount that can be invested in
https://blog.bondsindia.com/government-bonds/government-...
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Tax-free bonds Tax-free bonds are a good fit in a senior citizens portfolio. Government-backed institutions, such as the Power Finance Corporation (PFC), Rural Electrification Corporation (REC) and the National Highways Authority of India (NHAI), among others, issue bonds. They come with high safety ratings and the interest you earn is tax-free.
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The interest rate of fixed deposits at various banks is currently between 2.5 to 6.5 percent. Fixed deposits are usually the go-to investment product for senior citizens as they are considered to be the most secure. The RBI bond is not only 100 percent risk-free but is also offering a higher rate of 7.15 percent.
https://blog.bondsindia.com/government-bonds/rbi-frb-bon...
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These bonds are tax-free and are ideal for senior citizens as they provide a steady source of income. The interest rate is usually higher than other tax-saving instruments or fixed deposits. It is a long-term investment option for senior citizens with tenure from 10 years and exempt interest income under section 10 of the IT Act.
https://finity.in/tax-saving-options-suitable-for-senior...
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Senior Citizens Savings Scheme National Savings Certificate Apart from tax free bonds, there is the PPF and the ULIPs where the interest or the returns as the case maybe are free from tax
https://www.goodreturns.in/personal-finance/investment/7...
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Tax Free Bonds Tax Free Bonds are issued by the Government for specific purposes. Its most salient feature is its absolute tax exemption on interest as per Section 10 of IT Act and TDS is not applicable. The principal amount invested in these bonds does not qualify for tax benefit under Section 80C.
https://economictimes.indiatimes.com/news/how-to/how-to-...
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3. Senior Citizens Savings Scheme. The Senior Citizens Savings Scheme (SCSS) is a government backed savings scheme. It is more secure than bank FDs since the SCSS money is held with the government. SCSS has a tenure of 5 years which can be extended by another 3 years. SCSS has an interest rate of 7.4%. Investments in SCSS are tax deductible up
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Key Benefits of Tax saving bonds. 1) An investor can choose between a cumulative and a non-cumulative investment strategy. 2) They are low-risk investment tools that are suitable for folks who are just getting started with investing. 3) The maximum benefit of tax-saving bonds that can be deducted is Rs. 20,000.
https://blog.bondsindia.com/tax-free-bonds/what-are-tax-...
Tax Saving Bonds - GOI Bonds with 7.75% - ICICI Direct
Higher Interest rates for senior citizens High liquidity most of these issuers offer 75% of the investment amount as loan 2% over the interest rate on the deposit, as well as a pre-mature withdrawal Option
https://www.icicidirect.com/idirectcontent/ProductServic...
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