INSUBCONTINENT EXCLUSIVE:
The investment under Post Office FD qualifies for the benefit of Section 80C of the Income Tax Act.India Post or Department of Posts, which
runs the postal network of the country, offers a number of saving schemes with income tax benefits
Using these saving schemes, investor can claim a deduction up to Rs 1.5 lakh in a financial year from taxable income under Section 80C of
Interest rates on these post office saving schemes move in line with the government's interest rates on small savings schemes, which are
deposit a lump sum of money for a specific period and avail of features like guaranteed returns and choice of interest payout
Post office time deposit (TD) or Fixed Deposit (FD) account offers interest rates across four maturities: one year, two years, three years,
and five years, noted India Post on it's official website- indiapost.gov.in
The investment under 5 years fixed deposit qualifies for the benefit of Section 80C of the Income Tax Act, 1961, mentioned India Post.Post
Office Public Provident Fund (PPF) accountPost office Public Provident Fund (PPF) account offers an investment avenue with decent returns
coupled with income tax benefits
For the quarter ending December, PPF accounts fetch an interest rate of 8 per cent per annum
Interests on deposits are compounded on an annual basis, which means that it is added to the principal amount every year, noted India Post
PPF comes under the exempt, exempt, exempt (EEE) category of tax status
This means that returns, maturity amount and interest income are exempt from income tax
Deposits qualify for deduction from income under Section 80C of Income Tax Act.Post Office Senior Citizen Savings Scheme (SCSS) accountPost
Office Senior Citizen Savings Scheme (SCSS) serves as an investment avenue and helps in generating wealth for a successful retirement life
SCSS earns an interest rate of 8.7 per cent per annum, which is payable from the date of deposit on March 31/ September 30/December 31 in
the first instance and thereafter, interest are payable on March 31, June 30, September 30 and December 31
Tax Deducted At Source (TDS) is deducted at source on interest if the interest amount is more than Rs
Investment under this scheme qualifies for the benefit of Section 80C of the Income Tax Act, 1961 from April 1, 2007.Post office National
Savings Certificates (NSCs)Post Office National savings certificates (NSCs) fetch an interest rate of 8 per cent per annum
This interest is compounded annually but payable at maturity
An NSC of Rs 100 will offer Rs 146.93 on maturity after five years
NSCs have a lock-in period of five years
Deposits in the National Savings Certificate qualify for deduction under Section 80C of the Income Tax Act.
