Income Tax: Invest in THESE 5 Post Office saving schemes to get up to Rs 1.5 lakh tax benefit

Income Tax Saving Scheme: India Post provides a number of investment alternatives that serve two functions — one is saving, and the second is income tax benefits. The five post office savings schemes that provide income tax benefits are Public Provident Fund (PPF), the 5-year Post Office Deposit Scheme, the National Savings Certificate (NSC), the Sukanya Samriddhi Yojana (SSY), and the Senior Citizen Savings Scheme (SCSS).

Income Tax: Public Provident Fund (PPF)

A Public Provident Fund is a form of investment scheme that allows its user to save money that will be paid out at maturity along with interest. PPF now offers a yearly compound interest rate of 7.1 per cent. Furthermore, the PPF scheme deposits qualify for deduction under section 80C of the Income Tax Act in which investors can avail a tax benefit of up to Rs 1.5 lakh.

Income Tax Saving: Post Office Time Deposit Account (TD)

One of India Post's most well-known investing schemes is the Post Office Time Deposit Account (TD). While the scheme is accessible to everyone, it is especially well-liked in rural and remote parts of the country where there are few banks and few investment options. The minimum amount that can be invested under this scheme is Rs 1000 and in multiples of Rs 100 without a maximum limit. People opting for this scheme can also avail a tax exemption under section 80C of income tax under the 5-year TD.

Income Tax Return: Sukanya Samriddhi Yojana (SSY)

Sukanya Samriddhi Yojana is a government-backed small savings scheme for the benefit of the girl child. Sukanya Samriddhi Yojana account can be opened in the name of a girl child under the age of ten. When the girl reaches the age of 18, she becomes the owner of the account. Additional accounts can be opened when twins or triplets are born. This plan currently has an interest rate of 8 per cent. To join the scheme, a minimum initial deposit of Rs 250 is required, and a maximum of Rs 1,50,000 can be deposited under it. This plan offers tax exemption under Section 80C of the Income Tax Act of 1961 in addition to financial savings.

Income Tax: Senior Citizen Savings Scheme (SCSS)

This plan is open to anyone over the age of 60. The minimum and maximum investment limits are Rs 1,000 and Rs 15 lakh, respectively. Its five-year duration is renewable for an additional three years after it reaches maturity. The Senior Citizen Savings Scheme pays an annual interest rate of 8 per cent on deposits made between January and December. Senior citizens can claim a tax deduction for investments in this scheme under Section 80C of the Income Tax Act, 1961.

Income Tax Scheme: National Savings Certificate (NSC)

The National Savings Certificate (NSC) is a fixed-income investment scheme provided by India Post. The scheme is supported by the Government of India and the maturity period is 5 years. There is no maximum limit for investing; one can make an initial investment of Rs 100. Taxpayers can avail tax benefits under 80C of the Income Tax Act of 1961.

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