Best Tax-Saver Schemes for senior citizens in post office

Post office tax saving programmes are dependable and risk-free investment vehicles that guarantee investors a safe return. These initiatives, which are run by post offices around the country, are available for investment to any Indian citizen.

These tax-saving initiatives provide income tax benefits in accordance with various parts of the Income Tax Act of 1961. One can choose the plan that best suits his or her financial goals. Here are five post office programmes that provide tax deduction under Section 80C of the Income Tax Act.

Public Provident Fund

A Public Provident Fund is a type of financial instrument that allows its users to save money which offers an annual compound interest rate of 7.1% and a triple tax benefit since, under Section 80C of the Income Tax Act, contributions up to a limit of Rs. 1.5 lakhs, interest generated on those deposits, and maturity payments are all tax-free.

Sukanya Samriddhi Yojana

A Sukanya Samriddhi Yojana account can be created in the name of a girl child under the age of ten. When the daughter reaches the age of 18, she will become the owner of the account. This plan presently provides an interest rate of 7.6%. To join, a minimum initial investment of Rs 250 is required, with a maximum deposit of Rs 1,50,000 every fiscal year and it provides deduction under section 80C of the Income tax Act.

Senior Citizen Savings Scheme

Individuals who are retired and above the age of 55 but under the age of 60 can pick this plan if they invest within a month of receiving retirement benefits. The investment minimum and maximum are Rs 1,000 and Rs 15 lakh, respectively. Its five-year lifespan is extendable for an additional three years after it achieves maturity. The Senior Citizen Savings Plan pays an annual interest rate of 8% on deposits made between January and December. The interest is due every quarter and is fully taxed and as the plan matures, it does not provide any interest. Section 80C of the Income Tax Act of 1961 allows senior citizens to claim a tax deduction for investments in this plan.

Post Office Time Deposit Account

They come in a variety of maturities and are remarkably comparable to bank fixed deposits. Interest rates for modest savings plans, such as Post Office time deposits, are revised every three months. There is no minimum or maximum investment amount, and interest is credited to the account holder’s savings account each year. Section 80C of the Income Tax Act of 1961 applies to 5-year term deposits, and the interest rate on a 5-year term deposit is 7% this quarter.

National Savings Certificates

A minimum of Rs. 1,000, in multiples of Rs. 100, should be invested. There is no ceiling and the account will mature five years after the deposit date. An NSC investor may also seek loan funding by pledging their investment to a bank. The annual fixed interest paid by the NSC on a regular basis ensures the investor a consistent income.The deposits qualify for deduction under section 80C of the Income Tax Act 1961.