The financial year 2024-25 is about to end, so individuals under the old tax regime need to invest by March 31, 2025 to avail tax benefits.
By investing in the savings scheme of the post office , you can get a tax exemption of up to Rs 1.5 lakh under section 80C of the Income Tax along with great returns. The current financial year is ending by March 31. Before this, you can invest and get tax exemption.
If you are planning to invest, then we are telling you about the 5 best savings schemes of the post office. However, it is important to note that the exemption of up to Rs 1.5 lakh per year under section 80C is available only under the old income tax system. Those who opt for the new income tax system do not get any exemption under section 80C.
Public Provident Fund (PPF)
PPF is a long-term investment option in India, which offers tax exemption under 80C. Investment can be started from Rs 500. You can get tax exemption under section 80C by investing up to Rs 1.5 lakh annually in PPF. The interest rate on PPF for the January-March 2025 quarter is 7.1%.
National Savings Certificate (NSC)
NSC is a safe investment option that offers tax exemption as well as assured returns. Investors can claim deductions for investments up to Rs 1.5 lakh annually. The scheme accepts investments starting from Rs 1,000 with no upper limit. For the January-March 2025 quarter, NSC offers 7.7% interest, which is compounded annually but payable on maturity.
Sukanya Samriddhi Yojana (SSY)
SSY is an investment scheme launched by the government for girls, which offers great returns along with tax exemptions. Investors can invest between Rs 250 and Rs 1.5 lakh, with investments up to Rs 1.5 lakh being eligible for Section 80C deduction. Both the interest earned and maturity proceeds remain tax-free. For the January-March 2025 quarter, SSY offers 8.2% interest, calculated with annual compounding.
Senior Citizen Savings Scheme (SCSS)
SCSS is a government-backed retirement savings scheme that offers tax exemption as well as better returns. You can invest in this scheme from a minimum of Rs 1,000 to a maximum of Rs 30 lakh. Investment up to Rs 1.5 lakh is eligible for tax exemption under Section 80C. The interest rate on SCSS for the January-March 2025 quarter is 8.2% per annum.
Post Office Time Deposit (POTD)
For the 5-year POTD plan, investments up to Rs 1.5 lakh are eligible for Section 80C deduction, though the interest remains taxable. One can invest in this scheme with a minimum investment of Rs 1,000. There is no maximum limit. The interest rate on Post Office Time Deposit (5 years) for the January-March 2025 quarter is 7.5% (interest is payable annually but calculated on a quarterly basis).
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