Less than a month is left for the end of the current financial year 2021-22. In such a situation, if you want to invest to save tax, then get this work done as soon as possible. By investing in certain schemes till March 31, you can save tax for the financial year 2021-22. In many post office schemes, you get the benefit of income tax under section 80C of the Income Tax Act along with higher interest.
Section 80C of the Income Tax Act has several options where you can save tax on investments up to Rs 1.5 lakh. Today we are telling you about 5 such schemes operated by the post office, in which you will get the benefit of income tax exemption along with better returns.
Sukanya Samriddhi Yojana
Under this, the account can be opened before the age of 10 years after the birth of a girl child.
You can open this account in just Rs.250. In this, interest is being given at the rate of 7.6% per annum, which is much higher than fixed deposits.
In the current financial year, a maximum amount of Rs 1.5 lakh can be deposited under Sukanya Samriddhi Yojana.
You can also avail tax exemption under 80C by investing in this scheme.
This account can be opened at any post office or authorized branch of the bank. Click here for more information related to this scheme
Senior Citizen Savings Scheme
Interest is getting 7.4% per annum in this scheme.
Investing under this scheme offers tax benefits under Section 80C of the Income Tax Act, 1961.
Account can be opened after 60 years of age or more. At the same time, a person taking VRS who is more than 55 years but less than 60 years can also open this account.
Money can be invested under this scheme for 5 years. After maturity, this scheme can be extended for 3 years.
Under this scheme, you can invest up to a maximum of Rs 15 lakh. Click here for more information related to this scheme
public provident fund
At present, 7.1% interest is being given on the amount deposited in Post Office Public Provident Fund (PPF) accounts.
Interest on deposits is calculated on an annual basis, which means it is added to the principal every year.
PPF comes under EEE category of exemption. This means that income from returns, maturity amount and interest are exempted from income tax.
This account can be opened for 15 years, which can be extended for a further period of 5 years.
A PPF account can be opened with a minimum of Rs 500. In this, it is necessary to invest at least 500 rupees in a financial.
Under this scheme, you can invest a maximum of 1.5 lakh rupees in the account in a year. Click here for more information related to this scheme
National Savings Certificates
Investments in Post Office National Savings Certificates (NSC) are earning 6.8% per annum interest.
In this, the interest is calculated on an annual basis, but the amount of interest is paid only after the duration of the investment.
The amount deposited in National Savings Certificate is eligible for tax exemption under Section 80C of the Income Tax Act.
To open an NSC account, you need to invest a minimum of Rs 100.
You can invest any amount in NSC. There is no maximum investment limit in this. Click here for more information related to this scheme
National Savings Time Deposit Account
It is a type of Fixed Deposit (FD). By investing a lump sum amount for a specified period, you can take advantage of fixed returns and interest payments.
Post Office Time Deposit Accounts offer interest rates ranging from 5.5 to 6.7% for tenures ranging from 1 to 5 years.
According to the official website of India Post, one can avail tax exemption under section 80C of the Income Tax Act, 1961 for investing under a fixed deposit of 5 years.
There is a minimum investment of Rs 1000 in this. There is no maximum investment limit. Click here for more information related to this scheme
What is section 80C?
Many people start investing before the end of the financial year to save tax. Under section 80C, you can claim a deduction of Rs 1.5 lakh from your total income. Understand it in simple language like this, you can deduct up to Rs 1.50 lakh from your total taxable income through section 80C.