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Benefits of savings schemes in the post office

The government has launched many saving schemes in the country for citizens. By investing in these schemes, you can not only secure your future, you can also save income tax on them and they are also considered safe for investment. The Indian Postal Department, ie India Post, launched most of such schemes , but there are many people who still do not know that the returns from investment in which scheme will be tax free and which scheme to invest in.

Senior Citizen Savings Scheme (SCSS):   At present, under this government scheme, interest is being given at 7.9% per annum more than any scheme in the country. A minimum of Rs 1,000 and a maximum of Rs 15 lakh can be invested in this account, but this scheme is only for those who are above 60 years of age. Those people who are between 55 and 60 years of age can also avail this scheme, and those who have retired with superannuation or VRS. The maturity period of this account is five years.

Under Section 80C of the Income Tax Act, 1961, tax exemption is given for investing principal amount up to Rs 1.5 lakh in a SCSS account. However, depending on the change in income tax slab during Budget 2020, you can definitely check how much tax you will be charged according to the new rules.

Sukanya Samriddhi Yojana ( Sukanya Samriddhi Accounts - SSA):  This scheme is only for those who want to save for their daughters below 10 years of age. This account can be opened only in the name of his daughter and under this, benefits can be taken for two daughters. A minimum of Rs 250 and a maximum of Rs 1,50,000 can be invested in this account every year, and currently 7.6 percent interest is being paid on it. The maturity period of this account is 21 years.

Under Section 80C of the Income Tax Act, 1961, the scheme gets tax exemption on the amount up to Rs 1.5 lakh. There is no tax on the interest (compounded interest) generated annually in the account, while there is no tax on the amount received after maturity or after the withdrawal.

Lok Provident Fund ( 15-year Public Provident Fund Account - PPF):  This account is the most popular account in the job category, with a maturity period of 15 years. Each year at least Rs 500 and a maximum of Rs 1,50,000 can be invested in this account. This account is also the most profitable because it is an EEE category investment account, that is, you not only save income tax on the amount invested in it, but the entire amount of interest and maturity on it is definitely tax free. . Currently 7.1 percent interest is being given on the amount deposited in this account.

Under this scheme, you can claim tax benefits under Section 80C of the Income Tax Act, 1961, on the annual investment you have made. 

National Savings Certificate ( National Savings Certificates - NSC):  The plan is to invest in the five-year money, and the government is at the moment is to pay 6.8 per cent interest, which payment maturity. Due to compound interest compounded annually, if you invest Rs 1,000 in this scheme, then after five years, you will be paid Rs 1,463.

If you talk about income tax savings, then in this scheme also the account holder gets an exemption under Section 80C of the Income Tax Act, 1961 on an annual investment of 1.5 lakh. It adds compound interest annually, which gets TDS deducted after the maturity period.

Post Office Savings Bank ( Post Office Savings Account):  This account is any works like an ordinary bank account, and to facilitate ATM card and cheque book and passbook is available. Four per cent interest is paid annually on the amount invested in it, which is taxed, however, TDS is not deducted on it.

Under Section 80 TTF of the Income Tax Act, interest on this savings account up to Rs 10,000 is tax free. 

Post Office Monthly Income Scheme ( Post Office Monthly Income Scheme Account - MIS):  a minimum of Rs 1,000 and 4.5 million in individual accounts under this scheme can be invested in time. Interest paid on the deposited amount is paid in every monthly savings account. If the joint account is opened, then the investment limit in it rises to nine lakh rupees. Currently, 6.6 percent interest is paid annually under this scheme


Although there is no tax benefit on this scheme, there is a tax deduction on the interest generated every month. Yes, no TDS is deducted on the interest received and the deposit is definitely tax free

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