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.
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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.
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.
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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.
