These days, on many post office schemes, you get more benefits than the interest received in bank FDs. Apart from this, the biggest feature of these schemes is that in these you also get the benefit of tax deduction. In such a situation, let’s take a look at those schemes of the post office where you get the benefit of tax deduction.
In terms of saving, the small savings scheme of the post office can prove to be very effective. In these schemes, you can deposit your money with a considerable amount. Along with the guarantee of government security, you also get the benefit of very handsome interest on your deposited money.
These days, on many post office schemes, you get more benefits than the interest received in bank FDs. Apart from this, the biggest feature of these schemes is that in these you also get the benefit of tax deduction. In such a situation, let us have a look at those post office schemes where you get the benefit of tax deduction.
Public Provident Fund (PPF)
You can deposit your money for a long time in the Public Provident Scheme (PPF) of the post office. Under this scheme, a maximum investment of Rs 1.50 lakh can be made in a financial year.
The maturity period of this scheme is 15 years. At present, this post office scheme is offering an interest rate of 7.1 per cent per annum. This scheme gives the benefit of tax deduction under section 80C of the Income Tax Act.
Sukanya Samriddhi Yojana (SSY)
The Sukanya Samriddhi Yojana (SSY) of the Postal Office is being run especially for daughters. In this scheme, you can open the account of your girl child till the age of 10 years. At present, under this scheme, the benefit of annual interest is being given at the rate of 7.6 percent.
In this scheme, you can deposit a minimum of Rs 250 and a maximum of Rs 1.50 lakh under a financial year. This scheme gives the benefit of tax deduction under section 80C of the Income Tax Act.
National Savings Certificate (NSC)
You can start your savings with as little as Rs 1,000 in the post office’s National Savings Certificate (NSC) scheme. In this, you can invest in multiples of Rs.100.
No investment limit has been fixed. The maturity period of the scheme is of 5 years. Interest is being offered to you on the scheme at the rate of 7% per annum. This scheme gives the benefit of tax deduction under section 80C of the Income Tax Act.
Post Office Time Deposit (TD)
Post Office Time Deposit Scheme (Post Office TD) is also a very good scheme for saving. In this you can invest a maximum of Rs 1.50 lakh. You are being offered an annual interest rate of 7 percent on the scheme. This scheme gives the benefit of tax deduction under section 80C of the Income Tax Act.
Post Office Senior Citizens Savings Scheme (SSSC)
Senior citizens can invest their money in this post office scheme. The maturity period of this scheme is of 5 years. The interest rate of 8 percent is being given annually on the scheme.
The account can also be extended for 5 years on the maturity period. You can invest up to a maximum of Rs 15 lakh in this. This scheme gives the benefit of tax deduction under section 80C of the Income Tax Act.
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