INSUBCONTINENT EXCLUSIVE:
India Post or Department of Posts, which runs postal network of country, offers a number of saving schemes with different interest rates
It offers nine savings schemes and investment in some of them qualify for income tax benefits, said India Post
The schemes, which offer income tax deduction -- Time Deposit (TD), Senior Citizen Savings Scheme (SCSS), Public Provident Fund (PPF),
National Savings Certificates -- are available at post office and banks
Using these post office saving schemes, an investor can claim a deduction up to Rs 1.5 lakh in a financial year from taxable income under
Five-year Time Deposit offers a return of 7.8 per cent
The interest is payable annually but calculated quarterly
The investment under 5-year TD qualifies for benefit of Section 80C of Income Tax Act, 1961, said India Post.2
Senior Citizen Savings Scheme: An individual of age of 60 years or more is eligible for scheme
first instance and thereafter, interest shall be payable on March 31, June 30, September 30 and December 31
Tax deducted at source (TDS) is deducted on interest, if amount is more than Rs
Investment under this scheme qualifies for benefit of Section 80C of Income Tax Act, 1961 from April 1, 2007.3
15-Year Public Provident Fund Account: The scheme offers an interest rate of 8 per cent per annum, which is compounded yearly
One can open an account with Rs
100 but needs to deposit a minimum of Rs
Deposits under scheme qualify for deduction under Section 80C of I-T Act, said India Post
The interest earned is also tax-free, it further said.4
National Savings Certificates: The NSC fetches an interest rate of 8 per cent per annum and deposits under it also qualify for deduction
under Section 80C of Income Tax Act
This interest is compounded annually but payable at maturity
