Post office tax saving schemes are among the top investment options for risk-averse investors. These schemes, offered by India Post across the country, also provide income tax benefits under various sections of the Income Tax Act of India, 1961.
As the Government of India provides a sovereign guarantee on these schemes, you can be assured of returns on your investment. Available for every Indian citizen, these schemes offer numerous benefits, making them a popular investment choice.
Among the many post office tax saving schemes is the Post Office Tax Saving FD. With the Tax Saver FD, you get a tax exemption per Section 80C of the Income Tax Act. Read on to learn more about the Tax Saving FD by the post office.
Here is a list of Post office tax saving schemes you must know:
Post Office Time Deposit
National Savings Certificate (NSC)
Sukanya Samriddhi Yojana (SSY)
Senior Citizen Savings Scheme (SCSS)
Public Provident Fund (PPF)
Post Office Tax Saving Schemes |
Tenor (in years) |
Interest Rate (% p.a.) |
Tax Benefits |
||
Principal Amount |
Interest Earnings |
Maturity Amount |
|||
5 |
7.5% |
Available |
Not Available |
Not Available |
|
National Savings Certificate (NSC) |
5 |
7.7% |
Available |
Available |
Not Available |
Sukanya Samriddhi Yojana (SSY) |
21 |
8.0% |
Available |
Available |
Available |
5 |
8.2% |
Available |
Not Available |
Not Available |
|
15 |
7.1% |
Available |
Available |
Available |
Disclaimer: The rates mentioned above are applicable until June 2023, and are subject to changes and revisions thereafter. Check the current rates before you invest.
One of the prominent advantages of investing in these post office schemes is that their attractive interest rates go up to 8.2% p.a. Moreover, the interest rates of these government-backed schemes remain unaffected by market volatility for the stipulated time.
So, not only do these schemes assure you of secure returns, but they also keep your wealth safe from market fluctuations. Moreover, the minimum deposit requirements and simple eligibility of schemes, such as the post office tax saver FD, make it a popular choice.
Additionally, minimal documentation, quick and easy online process makes it easy for you to invest at any time from anywhere. With post offices all over India, you can open an account even if you reside in remote areas.
With simple eligibility parameters and an easy application process, investing in post office tax saving schemes is hassle free. Here are the eligibility criteria you have to meet:
Applicable for individuals above 18 years
Indian national
Minors can open an account with a guardian
You can also enjoy the facility to open a joint account with two to three adults.
You can download the application forms for most of the tax saving schemes offered by the post office at the official India Post website. To apply for post office tax saving schemes, follow the steps mentioned below.
Step 1: Visit the official India Post website at indiapost.gov.in.
Step 2: Download and take a printout of the relevant application form
Step 3: Fill in the application form and review the details for accuracy
Step 4: Attach all the essential documents
Step 5: Submit the form with documents at the nearest PO branch
You can also apply for these schemes online by creating a retail account on the website and following the instructions.
These schemes are ideal for you if you are looking to securely grow your corpus and earn assured returns while saving on taxes. With negligible financial risks and an affordable minimum investment amount, such schemes are perfect to inject stability into your portfolio.
These schemes best suit you if you are keen on investing in a risk-free financial instrument. Make sure you check and compare all the features and benefits of these schemes to pick an instrument that is right for your current and future goals.
Offered by the Department of Posts, these schemes offer tax benefits under various sections of the Income Tax Act. They also ensure secure financial growth with stable returns.
There are multiple tax saving schemes offered by the India Post. The tax benefits of these schemes are as per various sections of the Income Tax Act.
These schemes include the Public Provident Fund, National Savings Certificate, Sukanya Samriddhi Account, Senior Citizen Savings Scheme (SCSS), Post Office Savings Account and 5-year Time Deposit.
The interest earnings for these schemes depend on the scheme you invest in, the tenor, and the prevailing interest rate. Currently, the interest rate for these schemes goes up to 8.2%.
Yes, online facilities are available as the India Post has upgraded its operation and services. You may now operate and access your accounts online.
No, these schemes are independent of market fluctuations as they are supported by the government.
Yes, you can invest in any of these schemes from anywhere across India.
As per Section 80C of the Income Tax Act, all investments up to ₹1.5 Lakhs qualify for tax benefits. Tax benefits on the maturity amount and interest earnings vary from one scheme to another.
While FD investment up to ₹1.5 Lakhs is exempt from tax, you can enjoy tax benefits on interest earnings if they are under ₹50,000 for the financial year.
No, the interest earned on a post office 5-year fixed deposit (FD) is taxable. However, the deposit amount is eligible for tax deduction under Section 80C of the Income Tax Act. You can invest up to a maximum limit of ₹1.5 Lakhs per financial year to enjoy the exemption.
Schemes you can consider investing in for saving taxes are the Post Office Time Deposit (TD), SCSS, NPS, and Post Office Public Provident Fund (PPF).