Which post office scheme is best for tax free?
Which post office scheme is best for tax free?
A Comparative Study of Post Office Schemes for Tax Exemption
| Post Office Tax Saving Schemes | Tenure | Tax Benefit |
|---|---|---|
| Public Provident Fund (PPF) | 15 years | Yes |
| Sukanya Samriddhi Yojana (SSY) | 21 years | Yes |
| National Savings Certificate (NSC) | 5 years | No |
| Senior Citizen Savings Scheme (SCSS) | 5 years | No |
Which scheme is best in Post Office in 2021?
Here are five post office investments that help reduce tax liability as they come with tax benefits under Section 80C of the Income Tax Act, 1961.
- Public Provident Fund Account (PPF )
- National Savings Certificates (NSC)
- Sukanya Samriddhi Yojana (SSY)
- Post Office Time Deposit Account (TD)
Is Postal Rd taxable?
No, Post Office RDs are not tax free. The investment in Post Office RDs is not eligible for tax savings under Section 80C of the Income Tax Act, 1961. Investors can claim the tax benefit while ITR filing. However, the interest income is taxable as per the individual’s income tax slab rate.
Which post office scheme is best for investment?
Post Office Investment: Saving Schemes & Interest Rates
| Small Savings Scheme | Interest Rate | Interest Taxable |
|---|---|---|
| Post Office Time Deposit (5 year) | 6.7% | Yes |
| Kisan Vikas Patra (KVP) | 6.9% | Yes |
| Public Provident Fund (PPF) | 7.1% | No |
| Sukanya Samriddhi Yojana | 7.6% | No |
Is Post Office 5 year FD tax free?
Under Section 80C of the Income Tax Act of India, 1961, the deposit you placed in the 5-year fixed deposit account qualifies for an income tax deduction. Post office time deposit Interest is paid annually but calculated quarterly.
What is the interest of 5 lakh in post office?
6.6% p.a.
5 lakh. Annual Interest Rate is 6.6% p.a. Tenure is 5 years.
Is Kisan Vikas Patra tax free?
What will be the tax benefits for investing in Kisan Vikas Patra? The returns received from the Kisan Vikas Patra are not eligible for any tax deductions under Section 80C of the Income Tax Act. However, withdrawals made after the maturity of the scheme are exempt from Tax Deducted at Source (TDS).
What investments are tax free?
Listed below are tax free investments that meet a variety of needs and financial goals:
- Life Insurance. Rs. 1,50,000 (Rs 1.5 lakhs)
- PPF (Public Provident Fund) Rs. 1,50,000 (Rs 1.5 lakhs)
- NPS (New Pension Scheme) Rs. 1,50,000 (Rs 1.5 lakhs)
- Pension. Rs. 1,50,000 (Rs 1.5 lakhs)
- Life Insurance. Rs. 1,50,000 (Rs 1.5 lakhs)
Is PPF tax free?
Public Provident Fund (PPF) A PPF account can be opened with a bank or post office. PPF provides deduction up to Rs 1.5 lakh under Section 80C of the Income Tax Act for the amount invested during the financial year. Since PPF falls under the exempt category, the interest and maturity amount are exempt from tax.
