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Tax saving for senior citizens

Your mom-in-law can claim a tax deduction of up to Rs 1.5 lakh on her contributions under Section 80C of the Income Tax Act

Research Desk

My mother-in-law is a tax paying pensioner and she wants to invest in two tax saver mutual funds in the name of her grandchildren. Would she be able to claim tax benefit for her SIP investments in these tax saver funds?
- Ajith N

Your mom-in-law must invest in her name in one or two top-rated Equity Linked Savings Schemes (ELSSs) or tax planning mutual fund schemes to claim a tax deduction on her contribution.

She can make her grandchildren nominees since she is investing the money for their benefit. Your mom-in-law can start investing in two top-rate tax saving plans via a monthly Systematic Investment Plan (SIP) and claim a tax deduction of up to ₹1.5 lakh on her contributions under Section 80C of the Income Tax Act.

This article was originally published on March 18, 2016.

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