TAX BREAKS FOR SENIOR CITIZENS ANNOUNCED

The rapidly growing population of well-heeled senior citizens has been given a significant tax break by the Government. They can now set off investments up to Rs. 1 lakh made in the highly popular Senior Citizens’ savings scheme, against their total income under section 80C. Until now the scheme, with the maximum permissible investment of Rs. 15 lakh per year, offered no tax off sets. All persons above 60 years are eligible to invest in the scheme, which offers an annual return of 9% and works as a safety net for the elderly. For others, the Government has also included the five-year time deposits
in post offices in the tax offset. The Government has also announced a 5% bonus for the Post Office -
Monthly Income Account (PO- MIA) scheme.