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Post Office: Tax is to be saved and money is to be made! Invest in these schemes of Post Office

Post offices can invest lump sum money in fixed deposits for a fixed period. In this, you can take advantage of fixed returns and interest payments.

Post Office tax savings schemes:

The time is coming to collect income tax returns and save tax. In such a situation, most people are engaged in laying the arithmetic of the investment according to their savings. Here we are discussing about those post office savings schemes where you will save tax by investing as well as you will get good returns.




The Post Office (India Post) not only provides a better platform to invest in Small Saving Schemes, but also offers attractive tax returns along with attractive returns. If you want, you can also get tax rebate by investing money in some of its investment options. Interest rates on post office savings schemes run according to the interest rates on small savings schemes of the government, which are revised on a quarterly basis.

Fixed Deposit

Post offices can invest lump sum money in fixed deposits for a fixed period. In this, you can take advantage of fixed returns and interest payments. The Post Office Time Deposit (TD) or Fixed Deposit (FD) account offers interest rates for four maturity periods – one year, two years, three years and five years. According to the Indian Post, one can get the benefit of tax exemption under Section 80C of the Income Tax Act, 1961 for investing under a fixed deposit of 5 years.

Public Provident Fund (PPF)

You can also get income tax benefits by investing in the Public Provident Fund (PPF) of the post office. Interest on the deposit is calculated on an annual basis, which means that it is added to the principal every year. PPF comes under the category of tax exemption, exemption, exemption (EEE). This means that returns, maturity amount and interest income are exempt from income tax.

Post Office Senior Citizen Savings Scheme (SCSS)

For Senior Citizens, the Post Office Senior Citizen Saving Scheme (SCSS) is very effective in making money. The interest rate is payable on 31 March / 30 September / 31 December for the first time from the date of deposit and thereafter interest is payable on 31 March, 30 June, 30 September and 31 December.

If the interest amount is more than Rs 10,000 per annum, then TDS is deducted. Investing under this scheme provides the benefit of tax savings under Section 80C of the Income Tax Act, 1961.

Post Office National Savings Letter (NSC)

This post office scheme is quite popular. The annual rate of interest on investment in Post Office National Saving Certificate (NSC) is available. In this, the interest is calculated on an annual basis, but the amount of interest is given only after the investment matures. The amount deposited in the National Saving Certificate gets tax exemption under Section 80C of the Income Tax Act.

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