Tax Savings FY25: This great scheme of post office saves so much tax, income is guaranteed, know full details

Jyoti — Wed, 06 Nov 2024 07:28:55 +0000

Tax Savings in FY25, Time Deposit: Post Office’s small savings scheme ‘Time Deposit’ is a good scheme for tax savings. Post Office Time Deposit Account can be opened in any post office in the country.

You can save tax on deposits for 5 years in the scheme. Currently, there are two types of tax regimes in the taxation system. New tax regime and old tax regime. Tax deduction of section 80C can be claimed only in the old tax regime.

Post Office’s Small Savings Scheme is quite popular among Indians due to being risk free and easy. In this, the Post Office Time Deposit Scheme is like the fixed deposit of banks. Post Office Time Deposit Account can be opened in any branch for a period of 1, 2, 3 and 5 years. In this, the benefit of tax deduction can be availed on 5-year deposit.

Post Office TD: Current Interest Rates

Duration	Rate of interest (in percent)
1 year	6.9
2 years	7.0
3 year	7.1
5 years	7.5

Post Office TD: Tax exemption up to Rs 1.5 lakh

As per Section 80C of the Income Tax Act 1961, tax deduction of up to Rs 1.5 lakh can be claimed on 5-year deposits. For risk-averse investors, investing in post office fixed deposits is a preferred option.

Account can be opened online as well as offline through post office netbanking. Post Office Time Deposit Account can be opened singly or jointly (up to 3 members). It can be transferred from one post office to another. Minors can open an account under a legal guardian. More than one account can be opened in any post office. There is a nomination facility in the account.

There is a facility to withdraw money from POTD account before time or before maturity. This is called pre-mature withdrawal. According to the rules, pre-mature withdrawal can be done after 6 months from the date of opening the account. If withdrawal is done between 6-12 months from the date of opening the account, then interest will be given based on the rates of Post Office Savings Account.

Post Office TD: Know this also

Post Office Time Deposit Account can be opened with a minimum of Rs 1,000. After this, you can deposit as much as you want in multiples of Rs 100.
If the money is not withdrawn after maturity, no interest is paid on the deposited amount during that period.
The account should be changed in the name of the minor after he/she turns 18 years old.
If the deposit is made through cheque, the date of receipt of the cheque will be the starting date of TD and interest will be calculated from this date only.

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Post Office: Husband and wife deposit money together and earn ₹ 1.85 lakh from interest

Pravesh Maurya — Wed, 20 Dec 2023 05:41:10 +0000

If you want to earn every month then Post Office’s Small Savings Scheme can help you. The special thing is that in PO scheme, husband and wife can open a joint account together. The return in the post office scheme is guaranteed by the government. For this reason, one can invest in it without the tension of losing money.

The maturity of this scheme is 5 years and single or joint account can be opened in it. For your information, let us tell you that the interest available in this scheme has been increased from October. Now if you invest in this scheme, you will be offered interest at the rate of 7.4%. Note, every quarter the government changes the interest received from POMIS.

Know this important thing before investing in POMIS

If you are planning to open a single account under the post office scheme, then only up to Rs 9 lakh can be deposited. At the same time, if both husband and wife together open a joint account, then in this case only up to Rs 15 lakh is allowed to be deposited.

If husband and wife open a joint account then these will be the rules

In POMIS, 2 or 3 people can open a joint account. All joint account holders get equal share. Know that if someone wants a single account instead of a joint account, then it is also possible to do so.

Talking about withdrawal, if you withdraw money within 1-3 years, the amount will be returned to you after deducting 2% interest. At the same time, if you want to withdraw money after 3 years, then the money will be returned to you after deducting 1% of the deposit amount.

You will get this much interest on investment of Rs 5 lakh

Suppose if you invest ₹ 5,00,000 in this scheme. In 5 years you will get interest at the rate of 7.4% per annum. In this case, you will get Rs 3,084 from interest every month. At the same time, your total interest will be Rs 1,85,000.

This means that if you invest Rs 5 lakh for 5 years, you will get only interest of Rs 1,85,000 on POMIS account maturity. At the same time, more than Rs 3,000 will continue to come into the account every month.

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