Post Office Tax Saving Plans: There are a number of options available through post office schemes that have the potential to yield a positive long-term return on investment. Time Deposit and the Public Provident Fund (PPF) are two examples of tax-saving strategies. Here are five such plans that grant an exemption from income tax under section 80C.
First and foremost, the Public Provident Fund (PPF) is a long-term savings plan with a 7.1% compound interest rate and tax exemption under section 80C. To take advantage of this plan, one must invest for at least 15 years and can save up to 1.5 lakh.
Second, only girls under the age of 10 are eligible for the Sukanya Samriddhi Yojana (SSY) program. At the age of 18, the invested funds can be withdrawn, and after 21 years, the entire amount can be received. In this plan, one can save up to 1.5 lakh at an interest rate of 7.6 percent.
Thirdly, the Senior Citizen Savings Scheme provides a tax exemption of up to 1.5 lakh and an annual interest rate of 8%. This scheme’s investment cap has recently been raised to $30,000.
Fourthly, the post office’s Time Deposit program provides a five-year tax break on investments of up to 1.5 lakh dollars. This plan might be an option for people who want to save money on taxes because it has an interest rate of 7%.
Last but not least, the National Savings Certificate (NSC) program can be started with just Rs 1000. With a loan cost of 7%, one can save charge up to 1.5 lakh under segment 80C.
The post office plans give different choices to speculation and tax saving. Individuals have the option of selecting the plan that best meets their financial requirements from a variety of investment terms and interest rates.
