A number of savings programs are overseen by the Indian Post Office. A small savings scheme account can be opened at the post office. Customers can take advantage of these programs to reduce their tax burden while still receiving favorable returns on their deposits. If a taxpayer decides to invest in the exemption, they can save tax on it.
This initiative from the Post Office will help you save more money on taxes, will give you a return of 7%, and the plan will last for five years. This program is a term deposit from the post office with a variety of tenure options.
Rate of interest on term deposits
Depending on the term, interest rates on term deposits range from 6.6% to 7%. The post office offers a 1-year term deposit at 6.6% interest; It is 6.8% and 6.9% for two- and three-year terms, respectively. At the same time, 7% interest is also being paid on five-year term deposits.
How much time will the tax be saved for?
Term deposits can be purchased for one, two, three, or five years. This post office tenure also includes a number of different interest rates. Tax savings are another benefit of the five-year term deposit. Taxes are exempt under the Income Tax Act of 1961’s section 80C.
How much can be saved in taxes?
The Income Tax Act of 1961’s Section 80C permits tax savings of up to Rs 1.5 lakh. This is a popular expense saving elective that is given by various taxpayer supported initiatives. It is interesting to note that only investments made over the course of five years are eligible for tax savings.
