Post office Tax Saving Schemes: Post office schemes offer a variety of options that can provide a good return on investment in the long run. From the Public Provident Fund (PPF) to Time Deposit, there are several schemes that can be explored to save tax. Here are five such schemes that offer exemption under section 80C of income tax.
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Firstly, the Public Provident Fund (PPF) is a long-term savings scheme that offers a compound interest of 7.1 percent and tax exemption under section 80C. To avail this scheme, one must invest for at least 15 years and can save up to 1.5 lakh.
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Secondly, the Sukanya Samriddhi Yojana (SSY) is a scheme exclusively for girls under the age of 10. The invested money can be withdrawn at the age of 18, and the full amount can be received after 21 years. With an interest rate of 7.6 percent, one can save up to 1.5 lakh in this scheme.
Thirdly, the Senior Citizen Saving Scheme offers an annual interest rate of 8 percent and a tax exemption of up to 1.5 lakh. The investment limit in this scheme has recently been increased to 30 lakh.
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Fourthly, the Time Deposit scheme of the post office offers a tax exemption of up to 1.5 lakh on investment for five years. With an interest rate of 7 percent, this scheme can be a viable option for those looking to save tax.
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Lastly, the National Savings Certificate (NSC) scheme can be initiated with as little as Rs 1000. With an interest rate of 7 percent, one can save tax up to 1.5 lakh under section 80C.
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The post office schemes provide various options for investment and tax-saving. With a range of interest rates and investment periods, individuals can select the scheme that best suits their financial needs.
