I have my friend’s sister (aged 45) who was recently widowed and inherited her husband’s savings. She had invested the liquid portion of Rs.15 lakhs as FD in two banks. But she is paying lot of tax on the amount invested. Could you please suggest some other short term investment option for her, to minimize her tax outgo? She is looking at a time range of 1 to 5 years. Though she is a PAN holder, she has not filed any returns so far.
She is living in her own house, having no children and no other commitments or loan, etc. She is planning to take up a job in the near future. Her monthly expenses would be in the range of Rs.6 to 8 thousand.
She would get some money from sale of their house property in a year’s time and some insurance pay out after 5 years. She has some money in PPF transferred from her husband.
Please suggest suitable investment avenues for her, with low tax liability.