INSUBCONTINENT EXCLUSIVE:
Post office saving schemes with income tax benefits: FD, PPF, NSCs and SCSS qualify for tax benefits.India Post or Department of Posts,
which operates a network of more than 1.5 lakh post offices in the country, offers a total of nine saving schemes with different interest
Some of these post office saving schemes qualify for income tax benefits
Using these products, an investor can claim a deduction up to Rs 1.5 lakh in a financial year from taxable income under Section 80C of the
Interest rates on these post office saving schemes move in line with the government's interest rates on small savings schemes, which are
office fixed deposit (FD), one can deposit a lump sum of money for a specific period and avail of features like guaranteed returns and
choice of interest payout
Post office fixed deposit (FD) account, also known as office time deposit (TD) account, offers interest rates across four maturities: one
year, two years, three years, and five years, according to India Post official website- indiapost.gov.in
Interest is payable annually but is calculated quarterly
The following FD interest rates are applicable on deposits:PeriodRate1yr.A/c6.90%2yr.A/c7.0%3yr.A/c7.20%5yr.A/c7.8%The investment under 5
Income Tax Benefit Under Section 80C)Post office Public Provident Fund (PPF) accountPost office public provident fund (PPF) is a retirement
planning-focused instrument
The post office PPF account comes under the 'exempt, exempt, exempt' (EEE) category of tax status, meaning the returns, the maturity amount
and the interest income are exempt from income tax
The post office PPF account offers an interest rate of 8 per cent per annum, compounded on a yearly basis, according to the India Post
website.Post office Senior Citizens Savings Scheme (SCSS)Senior citizen savings scheme (SCSS), one of the post office saving schemes, serves
as an investment avenue and helps in generating wealth for a successful retirement life
Post office senior citizen savings scheme has a maturity period of 5 years, which can be extended for further three years within one year of
the maturity by giving application in prescribed format
Post office 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
Investment under this scheme qualifies for the benefit of Section 80C of the Income Tax Act, 1961, according to India Post's official
website.Post office National Savings Certificates (NSCs)National savings certificates or NSCs, one of the post office saving scheme, is
operated by the Department of Economic Affairs
For the quarter ending March 31, post office NSCs fetches an interest rate of 8 per cent per annum, as mentioned on the official website of
This interest is compounded on an annual basis but paid on maturity
Deposits in the National Savings Certificate qualify for deduction under Section 80C of the Income Tax Act.
