If you save money with the Post Office or any other saving plan for taxes, this news is important for you.
Not all Post Office investments give you tax benefits. Some schemes offer good returns but don’t qualify for tax savings under Section 80C of the Income Tax Act 1961. Let’s look at some of these schemes:
Mahila Samman Saving Scheme: This scheme is for women to encourage saving habits. There’s no age limit, but you must live in India.
You won’t get tax benefits on the interest earned from this scheme.
National Savings Time Deposit Account: You can open an account for one, two, three, or five years with the Post Office.
Interest rates vary depending on the duration. Tax exemption is available for deposits over five years, up to Rs 1.5 lakh under Income Tax Act 1961.
National Savings Recurring Deposit Account: This scheme offers a fixed interest rate for five years.
You can open an account alone or jointly and deposit at least Rs 100 every month. There’s no limit on deposits.
Kisan Vikas Patra: Investments in this scheme don’t qualify for income tax exemption.
The interest earned is taxable, but TDS isn’t deducted upon maturity.
Post Office Monthly Income Scheme: You can invest between Rs 1,500 to Rs 9 lakh in this scheme.
Joint accounts can hold up to Rs 15 lakh. You’ll earn 7.4% interest annually, but it’s taxable. TDS is deducted on interest over Rs 40,000 (Rs 50,000 for senior citizens).
