Tax Saving Scheme 5 Years Post Office Time Deposit Give 7 Percent Return And Save Income Tax

Post Office Scheme: Many saving schemes are operated under the Indian Post Office. The account of small savings schemes can be opened through the post office. In these schemes, people get the option of tax saving along with good returns on the deposited amount. If a taxpayer chooses to invest in it, then he can save tax according to the exemption.

Today we are going to tell about one such scheme of the post office, which will save you more tax. Along with this, it will also give a return of 7 percent and this scheme will also mature in 5 years. This scheme is a post office term deposit, which comes with different tenures.

How much interest on term deposit

Interest of 6.6 per cent to 7 per cent is available on term deposits with different tenures. Under the post office’s 1-year term deposit, the interest is 6.6 per cent, for 2 years and three years, 6.8 per cent and 6.9 per cent. At the same time, 7 percent interest is being given on five-year term deposits.

On which tenure will the tax be saved

Talking about term deposits, they are offered for 1 year, 2 years, 3 years and five years. Different interest is also offered on this post office tenure. At the same time, the benefit of tax saving is given on the term deposit of five years. Tax exemption is given under section 80C of Income Tax 1961.

How much tax can be saved

Tax saving of up to Rs 1.5 lakh can be done under Section 80C of Income Tax 1961. This is a popular tax saving option, which is offered under many government schemes. It is worth noting that tax saving is given only on investment of 5 years.

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