5 publish workplace financial savings schemes that provide revenue tax advantages

To improve long-term financial savings, the federal government launched publish workplace financial savings schemes. India Post gives quite a lot of funding choices that serve a double purpose- considered one of investing and the second providing revenue tax advantages below Section 80C. Public provident fund (PPF), 5-year publish workplace deposit scheme, National Savings Certificate (NSC), Sukanya Samriddhi Yojana (SSY), and Senior Citizen Savings Scheme (SCSS) are among the many 5 publish workplace financial savings schemes that provide revenue tax advantages.

1) Public provident fund (PPF)

After the newest revision, the rate of interest on the PPF is 7.1%. PPF, which has a maturity interval of 15 years, enjoys EEE (exempt, exempt, and exempt) standing.  The minimal quantity that have to be deposited in a PPF account in a monetary yr is ₹500 and the utmost restrict is ₹1.5 lakh. Your contributions as much as ₹1.5 lakh a yr qualify for revenue tax deduction below Section 80C. The better part about PPF is that the curiosity earned can be not taxable, and the quantity acquired at maturity can be exempt from tax.

2) Sukanya Samriddhi Yojana (SSY)

The rate of interest on Sukanya Samriddhi account is 7.6%. SSY additionally enjoys EEE standing. The minimal quantity that have to be deposited in a SSY account in a monetary yr is ₹250 and the utmost restrict is ₹1.5 lakh.

3) 5-Year Post Office Time Deposit Scheme

Just similar to financial institution mounted deposits (FDs) with 5-year tenure, funding within the 5-year publish workplace deposit scheme qualifies for tax deduction as much as ₹1.5 lakh per monetary yr. The minimal funding is ₹1000, nonetheless there isn’t a higher restrict. Currently, the 5-year publish workplace deposit scheme fetches 7%. 

4) National Savings Certificate (NSC)

Currently, the NSC gives an rate of interest of seven%. There isn’t any higher restrict for funding within the NSC and the minimal funding required is ₹100. Deposits of as much as ₹ 1.50 lakh within the NSC in a monetary yr qualifies for tax deduction below Section 80C. 

5) Senior Citizen Savings Scheme (SCSS)

An particular person of the age of 60 years or extra can open the Senior Citizen Savings Scheme account. Currently, SCSS pays an curiosity on the price of 8% every year. The maturity interval is 5 years. Investment of as much as ₹1.5 lakh within the Senior Citizen Savings Scheme qualifies for Section 80C tax advantages however the curiosity earned is taxable. 

Catch all of the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
Download The Mint News App to get Daily Market Updates.

More
Less