The Indian Post Office oversees a number of savings programmes. Via the post office, a small savings scheme account can be started. These programmes provide customers the chance to save on taxes while still receiving favourable returns on their deposits. A taxpayer can save tax based on the exemption if they decide to invest in it.
This Post Office initiative will help you save more tax and it will provide a return of 7%, and the plan will mature in 5 years. This programme is a post office term deposit with various tenure options.
Interest rate for term deposits
Term deposits are offered at interest rates ranging from 6.6% to 7% depending on the tenure. Interest on the 1-year term deposit offered by the post office is 6.6%; for terms of two and three years, it is 6.8% and 6.9%. Five-year term deposits are also earning 7% interest at the same time.
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What time period will the tax be saved?
When it comes to term deposits, they are available for 1, 2, 3, and 5 years. Several interest rates are also provided for this post office tenure. On the five-year term deposit, there is also the benefit of tax savings. Under section 80C of the Income Tax Act of 1961, taxes are exempt.
How much tax can be saved?
Section 80C of the Income Tax Act of 1961 allows for tax savings of up to Rs 1.5 lakh. This is a well-liked tax-saving alternative that is provided by numerous government programmes. It is noteworthy that only investments made over a five-year period qualify for tax savings.
