By investing in these 5 post office savings schemes, you can claim tax exemption of up to Rs 1.5 lakh under Section 80C of the Income Tax Act.
Post Office Savings Schemes: These post office savings schemes provide you a safe way to save money for a long time and get good returns on investment. This is the reason why middle class low income people prefer these schemes as compared to other investment options. Post Office Savings Schemes are available in over one lakh post offices across the country, and the best thing about them is that they are government-backed schemes, which means you can trust them to provide guaranteed returns .
The biggest advantage of investing in these schemes is that they are tax exempt up to Rs 1.5 lakh under Section 80C of the Income Tax Act. Here you are being given information about these 5 schemes of the post office. By investing in which you can secure your and your children’s future because they get better returns with good interest rate.
These 5 plans are the best for you
- Open an account for a girl child under 10 years of age in Sukanya Samriddhi Yojana, and let her manage it when she attains majority. In this scheme, with the current interest rate of 7.6 percent, you can deposit a minimum of Rs 250 and a maximum of Rs 1.5 lakh in a financial year and claim tax exemption under Section 80C of the Income Tax Act.
- Minimum Rs 500 and maximum Rs 1.5 lakh in a financial year for Public Provident Fund. The current annual compound interest rate is 7.1 percent and the maturity period is 15 years. In this scheme, you get three times the benefit including tax exemption on both the interest and maturity amount.
- If you are 60 years of age or above, open a Senior Citizen Savings Scheme account, which offers an interest rate of 8 per cent per annum and a maturity period of five years. You can invest up to Rs 15 lakh for tax exemption benefits under Section 80C with an option to extend the time limit after reaching maturity.
- Similar to bank fixed deposits, the post office time deposit account offers an interest rate of 7 per cent on five-year FDs. You can start investing in this scheme with as little as Rs 1,000, and you can invest as much as you want as there is no investment limit. However, in this FD, only on investment up to Rs 1.5 lakh, you will be able to take advantage of tax exemption under Section 80C.
- The National Savings Certificate (NSC) scheme is a better option if you want to invest a minimum of Rs 1,000 and in multiples of Rs 100 thereafter. So there is no maximum limit for this, and the maturity period of NSC scheme is 5 years. The current rate of interest is 7 percent, and you can claim tax exemption of up to Rs 1.5 lakh under Section 80C of the Income Tax Act. You can invest in this scheme only for 10 years.
