In today’s time, investor wants maximum return on his investment but also wants security. There are many schemes which are a better option in terms of investment. We will discuss here five such schemes which also give good returns and some schemes also get tax exemption under section 80C of the Income Tax Act.
You do not have to pay any tax on investment in Public Provident Fund (PPF). Under Section 80C of Income Tax, the investment amount, interest, and maturity of the scheme up to Rs 1.5 lakh is exempted from tax. At present, customers get 7.1% interest on investing in this scheme. At present, the interest available on PPF is very high. This much interest is not being offered by any bank on the fixed deposit scheme.
An interest of 6.8% (compound compound interest) is available annually on the National Savings Certificate Scheme. This scheme also guarantees returns. Under Section 80C of the Income Tax, it is exempted from tax. The maturity of National Savings Certificate is 5 years. The minimum investment amount in NSC is Rs 100 and there is no limit on the maximum investment amount. At present, if you invest Rs 1000 today, in terms of the interest that has been paid on this scheme, then you will get a return of Rs 1389.49 after five years i.e. after the scheme matures.
Senior Citizen Saving Scheme (SCSS) is meant to help those people who have crossed the age of 60 years and do not get any kind of monthly pension or do not have any other means of getting money. Such people can get the benefit of interest every quarter by depositing an amount up to Rs 15 lakh in the SCSS account. Citizens investing in this scheme can withdraw the interest amount from their linked account. The principal amount invested in this scheme is returned after the maturity. Senior citizens, if they want, can invest that amount afresh in the same scheme and take a new account.
Sukanya Samriddhi Yojana is being run for the safety of girls. This scheme also enjoys the tax status of Exempt-Exempt-Exempt (EEE) like PPF. Talking about interest, this scheme gives an annual interest of 7.6 percent better than bank FD.
Return guarantee is also available on Kisan Vikas Patra. On investing in this scheme, the customer gets 6.9 percent annual interest. The maturity period of this scheme is 124 months. The minimum investment amount in this scheme is Rs 1,000 and there is no limit on the maximum investment amount. However, there is no tax exemption on this under PPF and NSC.
