Deadline till march 31, if you want to save tax!
Even though there are many days left for the end of the current tax year (2024-25), it is important to make a solid investment and tax savings plan before that. If you have chosen the old tax system, then it is necessary to invest by march 31, 2025 to save tax. Under Section 80C of the Income Tax Act, 1961, taxpayers can claim tax exemption on investments up to Rs 1.5 lakh.
Post office Small Savings Scheme
There are many Post office Small Savings Schemes supported by the government of india, in which investment gives the benefit of tax exemption. Public Provident Fund (PPF), sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC), Senior Citizen Savings Scheme (SCSS) and Fixed Deposit are among them. These are safe investment options, which also give good returns and tax benefits.
Public Provident Fund (PPF)
If we talk about Post office Public Provident Fund (PPF), then every year you can deposit a minimum of Rs 500 to a maximum of Rs 1.5 lakh in it. It gives interest at the rate of 7.1 percent on the deposited amount. You can claim tax exemption under section 80C on the investment made in PPF. In this, both the interest amount and maturity amount are tax free.
sukanya Samriddhi Yojana (SSY)
Similarly, to educate daughters and empower them financially, the government of india started sukanya Samriddhi Yojana (SSY), on which 8.2 percent interest is given. In this too, under section 80C, you can claim tax exemption up to Rs 1.5 lakh annually. National Savings Certificate (NSC) is also a good option for tax exemption under the old tax system. The interest rate in this is 7.7 percent, which is paid at the time of maturity after 5 years. In this, investors get the benefit of compound interest growth.
Senior Citizen Savings Scheme (SCSS)
Senior Citizen Savings Scheme (SCSS) is for people above 60 years of age. It gives interest up to 8.2 percent. A maximum of Rs 30 lakh can be invested in this scheme. Both NSC and SCSS are integral parts of a diversified tax saving portfolio. The 5-year scheme of the post office also has many benefits. Post office Time Deposit Scheme is gradually becoming popular among the people. It gives 7.5 percent interest. Under Section 80C, there is also tax exemption on investment up to Rs 1.5 lakh.
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