Last year, when her husband what alive, both of them put together had an income of about 6-7 lakhs per year (interest income, pension, etc). Both of them never filed tax returns since they retired which was 15-20 years ago. They just filled up Form 15 everywhere to avoid TDS & since the total income split by 2 came within the tax-free bracket, they never bothered to file returns.
Now, since the husband died, it's just the wife who will have around 7 lakhs per year of income?
Should she start making some ELSS 80C deposits & filing tax returns or will it invite questions about why she didn't file returns all these years?
Why not just put them with highest percentage banks for fixed deposits, but to several ones with each guaranteed amount ?! I think it's a very good plan and solid and safe income, I am more than sure about that. I plan do to such for my own mather when it will be the need.