Post Office Scheme: The current financial year will end on March 31, which means only a few days are left to invest for tax savings. Usually, when it comes to tax benefits under Section 80C of the Income Tax Act 1961, many people’s attention goes towards the Small Savings Scheme, especially those run by the post office.
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But, All popular small saving schemes of the post office, which are safe and the returns are also better, do not provide the benefit of tax exemption under Section 80C. That means all investments made in the post office are not tax-free. Below are 4 such post office schemes, which do not provide tax exemption under section 80c.
Recurring Deposit (RD)
Interest rate: 6.7% per annum
Maximum Deposit: No Limit
Minimum deposit: Rs 100 monthly
Maturity: 5 years, which can be extended for a further 5 years.
Tax benefits: No tax exemption benefit on returns
If the return from investment in RD is over Rs 40,000, then 10 per cent TDS will apply to it, for senior citizens this limit is Rs 50,000.
Kisan Vikas Patra (KVP)
Interest rate- Currently investors are getting 7.5% per annum
The maturity Period for the investment in the scheme is 115 months.
Deposit limit- There is no maximum deposit limit.
Investing in Kisan Vikas Patra requires a minimum deposit of Rs 1000.
Tax benefits: This investment scheme does not provide tax exemption benefits.
The Kisan Vikas Patra offers to double investors’ money in 115 months.
Monthly Income Scheme (MIS)
The interest rate for the investment in the scheme is 7.4% per annum.
Maturity: 5 years, a new account can be opened for another 5 years at the interest of that time.
Maximum Deposit- Investors can deposit Rs 9 lakh in a single account, and Rs 15 lakh in a joint account.
Monthly Income Schemes do not prove tax-saving benefits.
This post office scheme is better for those people who want monthly income by depositing their money in a lump sum.
Mahila Samman Savings Certificate, 2023
Investors are getting an interest rate of 7.5% per annum on their investment
Maturity period: 2 years
There is no maximum deposit limit to invest in the Mahila Samman Saving Certificate
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Minimum Deposit required is Rs 1000
There are no tax savings benefits
