To Avoid New TDS on Interest Above Rs 1 Lakh, How Much Should Senior Citizens Invest?
Smart Investment Strategies for Senior Citizens
In a recent update, banks have announced that they will deduct TDS (Tax Deducted at Source) on interest earned from Fixed Deposits (FD) if the amount exceeds Rs 1 lakh in a financial year. While this may sound alarming, senior citizens can employ some smart investment strategies to keep their earnings intact. Let’s explore how they can optimize their investments.
Understanding the TDS Implication
For senior citizens, TDS on FD interest can significantly affect their income, especially if they are dependent on these earnings for their livelihood. The key is to ensure that the interest earned remains below the Rs 1 lakh threshold. But how can this be achieved?
Investment Planning to Avoid TDS
Senior citizens can plan their investments smartly by considering the following:
- Invest in Multiple Banks: Instead of putting all funds into one bank, consider spreading investments across multiple banks. This way, the interest from each bank can remain under the Rs 1 lakh limit.
- Opt for Short-Term FDs: Shorter tenures can help in managing interest payouts more effectively, allowing you to stay below the threshold.
- Joint Accounts: If investing with a spouse, consider joint accounts where the TDS limit applies to each individual, effectively doubling the limit.
Conclusion
With smart planning, senior citizens can enjoy the benefits of Fixed Deposits without worrying about TDS implications. For further insights and offers on investment options, visit Looffers.com. Remember, a little planning goes a long way in ensuring your hard-earned money works for you!
