New Delhi Tax Benefit on Small Savings Schemes: Post Office Savings Schemes are a good investment option for people. Good returns as well as the guarantee of complete money safe in the post office attracts people to invest in post office savings schemes even today. There is also an Income Tax Benefit on some of the post office savings schemes. By investing in such schemes, you can claim deduction under section 80C of the Income Tax Act.
A deduction of up to Rs 1.50 lakh can be claimed under section 80C by investing in tax saving options. Let us know which post office savings scheme has tax benefit and which scheme does not have this benefit. Also, let’s have a look at the facts like interest rate, minimum amount to open an account-
How the full money is safe in the post office
If someone back defaults or becomes insolvent, then only the total deposit of the customer is protected up to Rs 5 lakh. That is, no matter how much money is deposited in a bank of the customer, but if the bank goes bankrupt, then he will get back only a maximum of 5 lakh rupees. But this is not the case in the post office. Your entire deposit is kept safe at the post office.
Interest rates on post office schemes are fixed every three months. Post
office savings schemes are called Small Savings Schemes. The interest rates on these savings schemes are fixed every quarter. The interest rates applicable from April 1 are currently applicable till June 30, 2021. By the end of June, it will be revealed what will be the interest rates for the July-September quarter.
