New Delhi: India Post, the state-owned banking-to-postal conglomerate, offers various services for online, as well as, for offline customers coming from the remote locations where the advanced banking facilities are not present. As far as the tax saving is concerned, India Post has several tax saver schemes under the Post Office Saving Schemes with which the individuals can claim tax breaks by investing in them. The tax deduction on investment in Post Office Tax Saving Schemes is available under Section 80C of the Income Tax Act.
Under the Post Office Saving Scheme, India Post has the facility of Post Office Savings Account, National Savings Recurring Deposit Account, National Savings Time Deposit Account, National Savings Monthly Income Account, Senior Citizens Savings Scheme, Public Provident Fund Account, National Savings Certificates (VIII Issue) Account, Kisan Vikas Patra Account, and Sukanya Samriddhi Account.
Out of the aforementioned saving schemes, National Savings Time Deposit, Senior Citizens Savings Scheme (SCSS), Public Provident Fund Account, National Savings Certificates (VIII Issue) Account and Sukanya Samriddhi Account offers a tax break of up to Rs 1.5 lakh on investment. Interestingly, PPF and Sukanya Samriddhi Account offer triple tax benefits as it offers a tax break of up to Rs 1.5 lakh on investment and moreover, the interest earned and the amount withdrawn after the completion of maturity period is also tax-exempt.
Post Office Time Deposit fetches an interest rate of 7.7 per cent which is payable annually and calculated quarterly. Post Office PPF, NSC and SSA offer an interest rate of 7.9 per cent per annum. The maximum investment limit in SSA and PPF has been capped at Rs 1.5 lakh per annum. On the other hand, Post Office SCSS offers an interest rate of 8.6 per cent per annum. Only resident individuals of 60 years and above age are eligible for SCSS.