Post Office: The biggest plus point of post office savings schemes is that they are government backed and thus offer guaranteed returns. Apart from this, these schemes also provide tax benefits of up to Rs 1.5 lakh under Section 80C of the Income Tax Act. Let’s take a look at some of the savings schemes of the post office, which will also help in tax saving.
Post Office Scheme: You must have heard people discussing about many post office savings schemes. Have you ever wondered why? This is because these schemes facilitate long-term savings and provide risk-free investment returns. Due to such reasons lakhs of middle income individuals choose these schemes as compared to other investment options.
These are operated through more than one lakh post offices spread across the country. The biggest plus point of post office savings schemes is that they are government backed and thus offer guaranteed returns. Apart from this, these schemes also provide tax benefits of up to Rs 1.5 lakh under Section 80C of the Income Tax Act. Let’s take a look at some of the savings schemes of the post office, which will also help in tax saving…
Sukanya Samriddhi Yojana (SSY)
You can take advantage of the Sukanya Samriddhi Yojana scheme by opening an account in the name of a girl child below 10 years of age. The girl child can take ownership of the account when she attains the age of 18 years or attains majority. The current interest rate offered on Sukanya Samriddhi account is 7.6 per cent. A minimum initial deposit of Rs 250 and a maximum of Rs 1.5 lakh can be made in a financial year. Sukanya Samriddhi Yojana provides tax exemption under section 80C of the Income Tax Act.
Senior Citizen Savings Scheme (SCSS)
If you are 60 years of age or above, you can open Senior Citizen Savings Scheme account. SCSS has a maturity period of five years and offers an interest rate of 8 per cent per annum. It is worth noting that its term of five years is renewable after reaching maturity. An investment of up to Rs 15 lakh is eligible for Section 80C tax benefits in this scheme.
Post Office Fixed Deposit Account
Post Office Time Deposit is offered through India Post and is similar to Bank Fixed Deposit. Post Office Time Deposit interest rates are reviewed every three months. The plus point of this scheme is that while the minimum investment is Rs 1,000, there is no limit on the maximum investment. However, the amount for tax benefit is Rs 1.5 lakh. Investment made under 5 year fixed deposit is eligible for Section 80C tax benefits. The current interest rate for a 5-year fixed deposit is 7 per cent.
National Savings Certificate (NSC)
You can invest a minimum of Rs.1,000 in NSC scheme and in multiples of Rs.100 thereafter. There is no upper limit. The maturity period of NSC scheme is five years and the current interest rate is 7 percent. The minimum age limit is 10 years and one can claim a tax deduction of up to Rs 1.5 lakh under Section 80C of the Income Tax Act.
