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Top 5 Post Office Schemes With Section 80C Tax Benefits

Updated: Jan 26


Top 5 Post Office Schemes With Section 80C Tax Benefits

Are you looking for post office schemes for tax benefits? Well, you are in luck! Whether you are a novice investor or experienced in financial planning, there's something for everyone on the list mentioned in this blog. So, if you are ready to maximise your savings and explore some lucrative investment options, keep reading!

This blog post goes through the top 5 post office schemes under 80C  in India that can help you save money and lower your tax bill. Let's dive in and discover how these post office schemes can work wonders for your tax planning.

 

Table of Content

 

What Are Post Office Schemes?

Post Office Schemes refer to a set of financial savings and investment instruments offered by the postal department in India. These schemes are designed to cater to the diverse financial needs of individuals, providing options for savings, long-term investments, and retirement planning. Managed by India Post, the country's postal system, these schemes are known for their accessibility, reliability, and often come with attractive interest rates.


Individuals can invest in various post office schemes based on their financial goals and preferences. Some popular post office schemes include National Savings Certificates (NSC), Post Office Recurring Deposits, Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), and the Senior Citizen Savings Scheme (SCSS). Each scheme has its own features, tenure, and benefits, ranging from tax exemptions to competitive interest rates.


Investors can visit their local post offices to open accounts or make investments in these schemes. The ease of access, coupled with the trust associated with government-backed initiatives, makes post office schemes a preferred choice for many individuals in India seeking secure and structured financial instruments.


5 Best Post Office Schemes Providing Section 80C Tax Benefits

These programs not only offer competitive interest rates, but they also give tax benefits. So, let's look at the top 5 savings choices provided by post offices in India.


National Savings Certificates

The National Savings Certificates (NSC) are first on the list for good reason. This plan is popular among investors who want to save for the long term. NSC provides a yearly compounded fixed interest rate. There is no upper limit for investing in NSC. However, you need a minimum of ₹ 1,000 to begin this plan.

It has a 5-year maturity duration, making it a dependable and secure investment alternative. Furthermore, the interest received on NSC is tax deductible under section 80C of the Income Tax Act 1961.


Post Office Recurring Deposits (PORD)

The Post Office Recurring Deposits (PORD) are up next. If you want a savings plan that allows you to contribute a set amount each month, PORD is an excellent choice. This plan provides a set interest rate that is compounded quarterly. The minimum deposit needed to start a PORD account is relatively low. This plan runs for 5 years.

These features make it accessible to a broad spectrum of investors. The tax on interest earned on a recurring deposit comes under tax exemption under 80c up to ₹ 1,50,000. However, no TDS applies to it.


Public Provident Fund (PPF)

Moving on, the Public Provident Fund (PPF) is one of India's most popular savings programmes. Why so? PPF gives favourable interest rates and the option to contribute whatever amount between the government's minimum and maximum limitations. And this programme is ideal for long-term investments as it has a 15-year maturity period.

However, you can withdraw the premium after the 7th financial year. Furthermore, both the interest and the maturity amount are tax-free. And last but not least, along with being a tax-efficient investment alternative, PPF is also risk-free!


Sukanya Samriddhi Yojana (SSY)

If you're seeking a savings p