Post Office schemes: People invest in most of the Post Office schemes thinking that they will get tax benefits. But this is not the case with every scheme, so if you are planning to invest in Post Office schemes for tax benefits, then first know about those 5 popular schemes in which you do not get the benefit of 80C.
Post Office Monthly Income Scheme
Post Office Monthly Income Scheme helps you earn interest on your deposits every month. Currently, it is paying 7.4% interest. The interest paid under this scheme is taxable.
Kisan Vikas Patra
Kisan Vikas Patra is a very old and popular scheme of the post office. In this scheme, your investment is guaranteed to double in 115 months. It gives an interest rate of 7.5% per annum. You do not get tax benefit in this scheme.
Post Office FD
Post Office FD is also called Post Office TD. This scheme is run for tenures of 1, 2, 3 and 5 years. The interest rate is also different according to different tenures. There is no tax benefit on tenures of 1, 2 and 3 years, but tax benefit can be availed under 80C on tenure of 5 years. 5-year FD is also called tax free FD.
Mahila Samman Savings Certificate
Mahila Samman Savings Certificate Scheme is run for women so that they can be encouraged to save by giving better interest. This deposit scheme with a tenure of two years is getting interest at the rate of 7.5 percent. Rebate under section 80C of Income Tax Act cannot be availed on investment under this scheme.
Post Office RD
Post Office RD is considered a very good scheme for investing a fixed amount every month. In this scheme, investment has to be made for 5 years. Currently, the scheme is giving interest at the rate of 6.7 percent. There are no tax benefits on RD. Tax is levied on the interest received on it.
