In these post office savings schemes, along with tax exemption, better returns are also available. Through these, you can fulfill important financial goals of life.
Post Office Savings Schemes: If you are thinking about investing and want to get better returns as well as benefits of income tax exemption, then 3 post office schemes can be a better option for you. By investing in these, you can save tax on an amount up to Rs 1.5 lakh under Section 80C of the Income Tax Act. Through these, you can fulfill important financial goals of life. You can choose any one of these plans as per your requirement.
National Saving Certificate (NSC)
- Interest is getting 6.8% per annum on investment in NSC.
- The interest is calculated on an annual basis, but the amount of interest is paid only after the tenure of the investment.
- A minimum investment of Rs 1000 has to be made in this scheme. There is no maximum investment limit.
- NSC account can be opened in the name of a minor and joint account can be opened in the name of 3 adults.
- Minors above the age of 10 years can also open an account under the supervision of the parents.
- By investing, you can save tax on an amount up to Rs 1.5 lakh under Section 80C of the Income Tax Act.
Time deposit scheme
- In this scheme one has to invest a lump sum amount for a fixed period. This is a kind of FD only.
- Post Office Time Deposit Accounts offer interest rates ranging from 5 to 6.7% for tenures ranging from 1 to 5 years.
- One can avail tax exemption under section 80C of the Income Tax Act, 1961 for investing under a fixed deposit of 5 years.
- Minimum investment of 1000 rupees has to be made. There is no maximum investment limit.
- Anyone above 18 years of age can invest. Joint account can also be opened.
Public provident fund
- At present, 1% interest is being received on the amount deposited in the Post Office Public Provident Fund accounts.
- This plan comes with EEE status. In this, tax benefits are available in three places. Contribution, interest income and maturity amount, all three are tax free.
- The benefit of tax exemption is available under section 80C of the Income Tax Act.
- PPF account can be opened with only Rs.500. But later it is necessary to deposit Rs 500 every year in one go.
- Only a maximum of Rs 5 lakh can be deposited in this account every year.
- This scheme is for 15 years, from which it cannot be withdrawn in the middle. But it can be extended for 5-5 years after 15 years.
