If you are a taxpayer, you can also invest in a place where you will get better returns along with saving tax and with that your investment will also be safe. In such a situation, you can invest in small savings schemes of the post office. There are some savings schemes of the post office which not only get good returns, but also save tax under section 80C of Income Tax Act. Under this section, tax deduction can be availed on the maximum amount up to Rs 1.5 lakh. While withdrawing income tax, a taxpayer gets the benefit of deduction i.e. deduction under section 80C, which he can deduct from his income as expenses, so that he has to pay tax on lesser amount. Let’s know about the 5 post office schemes in which income tax is exempted for investing.
Public Provident Fund (PPF)
The post office scheme offers an interest of 7.9 per cent annually. A minimum of Rs 500 and a maximum of Rs 1.5 lakh can be invested in a financial year. You can make a deposit in lump sum or in 12 installments. The joint account cannot be opened under this scheme and any citizen of India can open only one account. The account can also be opened with cash or check. The date of the check should be the day the account is being opened. Account can be transferred from one post office to another. Its maturity period is 15 years but within one year of maturity it can be extended for 5 more years and will continue in the same way.
Sukanya Samriddhi Yojana (SSY)
The scheme is getting interest at the rate of 8.4 percent per annum. A minimum investment of Rs 25 0 lakh and maximum of Rs 1.5 lakh can be made in a financial year. In this, the girl’s parents or parents can open an account in her name. A parent can open only one account in the name of a girl. The account can be opened till the age of 10 years. Money deposited in the account can be made from the date of opening of the account till the completion of 15 years. Partial withdrawal of 50 percent balance can be done when the account holder is 18 years of age. The account can be closed after the completion of 21 years.
Post Office Time Deposit (TD)
A time deposit is also called a fixed deposit. In this scheme, only accounts with a duration of 5 years will get benefit under section 80C of income tax. The account will get 7.7 percent interest annually on the account of 5 years duration. You have to invest at least 1000 rupees in the scheme and there is no maximum limit on how much you can invest in times of 100. An account can be opened by a single adult, a maximum of three adults, a joint account, a minor over 10 years of age. Account can be transferred from one post office to another post office. Any number of accounts can be opened in any post. A single account can be converted into a joint and vice versa. The minor will have to apply to change the account in his name upon attaining majority.
National Savings Certificate (NSC)
The scheme earns interest at the rate of 7.9 per cent per annum. You can deposit at least 1000 rupees in the account and there is no maximum investment limit. This scheme can be opened for 5 years. Certificate in the scheme Any one adult, maximum three adults together can take a joint account, minor of more than 10 years of age.
Senior Citizen Savings Scheme (SCSS)
The scheme earns an interest of 8.6 percent annually. You can only make a deposit in the account of 1000 rupees, in which the maximum amount should not exceed Rs 15 lakh. Anyone 60 years of age or older can open an account in it. The maturity period in the scheme is 5 years. An account of less than 1 lakh rupees can be opened with cash, but for more than 1 lakh, it has to be opened only by check. Account can be transferred from one post office to another.