Five post office schemes with 80C benefit

The Central government have introduced some Post Office schemes to provide tax breaks and encourage long-term savings in order to make it more attractive to investors. India Post offers a variety of simple-to-open, effective, and secure investing options. You can select the plan that best fits your investment and tax saving objectives. As per Section 80C of the Income-tax Act 1961, these programmes also offer tax benefits. So here are the five tax advantaged programmes offered by the post office –

National Savings Certificates (NSC)
In this scheme minimum Rs. 1,000 should be invested, in multiples of Rs. 100 and there is no upper limit in it. Five years from the deposit date, the account will reach its maturity. An NSC investor may also obtain loan financing by securing a bank pledge of their investment. A person can earn a guaranteed 7% interest return on annual basis. The annual fixed interest is paid by the NSC on a regular basis to its policy holder.

Time Deposit Account (TDA)
The Time Deposit Account provided by India Post is another name for the Post Office Time Deposit and tax saving. This scheme has various tenures and are very similar to various bank fixed deposits. Every quarter, interest rates for small savings plans, like Post Office time deposits, are reviewed and get changed. The minimum investment is Rs 1000 and again there is no upper limit. The account holder’s having savings account will be credited of the annual interest.

Interest rate of this scheme is 7% in present quarter and if any individual opts 5 year term deposit, Section 80C of the Income Tax Act 1961 applies to the investment made.

Public Provident Fund (PPF)
A Public Provident Fund which is very popular in job holders’ fraternity is a financial product that enables its user to accumulate an handsome amount of money to be paid at maturity along with interest. The present annual compound interest rate offered by PPF is 7.1%.

PPF accounts offer threefold tax benefits. PF account can be claimed as deductions u/s 80C, Interests earned from PPF deposits are tax-free and wealth tax is not applicable on PPF accounts. Therefore, PPF accounts offer triple exemption benefits – deduction on deposits, tax-free returns and no wealth tax.

Sukanya Samriddhi Yojana (SSY)
A Sukanya Samriddhi Yojana account can be opened in the name of a girl child who is younger than 10 years old. The girl will take ownership of the account once she completes 18 years age. When an women gives birth to twins or triplets, additional accounts can be started. The current interest rate being offered on this plan is 7.6%. A minimum initial deposit of Rs 250 and a maximum of Rs 1,50,000 for each fiscal year are required to join the scheme.

Senior Citizen Savings Scheme (SCSS)
Anyone who is 60 years old or older than this, may invest in this plan. Those who are retired and over 55 but under 60 can choose this plan as long as they invest within a month of getting retirement benefits. The minimum investment limit is Rs 1000 and in the multiples thereof with maximum deposit of ₹15 lacs.. This is a five-year term with renewable option once it reaches maturity for an additional three years. The Senior Citizen Savings Scheme offers an interest rate of 8% per year.

So these are the best five tax saving schemes with guaranteed rate of interest currently offered by India Post. If you have any query regarding this article or related to any other financial, investment, tax saving instruments etc, feel free to approach us thru your valuable comments or via our email ID – moneysmint99@gmail.com