Best tax saving investment for my retired mother

If you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.

View in App Best tax saving option
Getty Images
I am looking for a tax saving investment for my mother. She is retired and 58 years old. Her yearly pension is Rs 2.4 lakh. Can you please suggest some investment options with good tax saving? Can you please suggest which is better - ELSS or ULIP?
--Chetan Chavan

If your mom’s annual income is Rs 2.4 lakh, she need not do any tax planning. As per the current income tax slab, a resident Indian below 60 years need not pay any tax if her income is below Rs 2.5 lakh.

You should always remember that it is always better to keep your insurance and investment needs separate. For insurance, always buy pure term insurance plans. These plans have lower premium. That means you can buy a very large insurance cover by paying a lower premium. It is very important to buy an adequate insurance cover to take care of the needs of your financial dependents after your death. Your mom may not need life insurance if she doesn’t have any financial liabilities or people dependent on her financially.


For investments always stick to mutual funds that matches your investment horizon and risk profile. If you also want to save taxes, you should opt for Equity Linked Saving Schemes or tax-saving mutual fund schemes. These schemes come with a lock-in period of three years and they have the potential to offer higher returns than other tax-saving options available under Section 80C of the Income Tax Act. Here are our recommended ELSS or tax saving mutual fund schemes to invest in 2019.

READ MORE
View in App
downloadApp Best tax saving option
ADVERTISEMENT

Top Mutual Funds

3 M(%)
6 M(%)
1 YR(%)
3 YRS(%)

READ MORE:

LOGIN & CLAIM

50 TIMESPOINTS

ET Business Listings
Generate Enquiries for your Business by Listing on Economictimes.com
Save with Tax planning SIP's

More from our Partners

Loading next story
Text Size:AAA

ET Sections

View Full Site »
Download App

More from our network

save image

Success
This article has been saved

*