Is Post Office FD eligible for 80C?

Is Post Office FD eligible for 80C?

5-Year Post Office Time Deposit Under current income tax laws, investment in income tax-saving FDs can help you claim deductions for investments up to ₹ 1.5 lakh a year under Section 80C of the Income Tax Act. Currently, the five-year Post Office Term Deposit offers an interest rate of 7.4 per cent.

Which post office scheme is best for tax saving?

While Post Office Time Deposit (POTD) is a popular savings scheme with tenures ranging between 1 year, 2 years, 3 years and 5 years. The minimum investment amount is INR 1,000. Investments up to INR 1,50,000 in both the schemes qualify for tax exemption under Section 80C of the Income Tax Act, 1961.

Are all 5 years FD tax-free?

One can claim an income tax deduction by investing money in a five-year FD scheme under Section 80C of the Income Tax Act, 1961….Comparison With Other Tax-Saving Investments.

Investment Type	5-Year Bank Fixed Deposit
Returns	5% to 7%
Lock-in Period	5 years
Tax on Returns	Yes

Is post office savings tax-free?

If you have a post office savings account, interest earned on the same up to ₹3,500 in a financial year is tax exempt in case of an individual account. In case you have a joint account, the exemption goes up to ₹7,000.

Which is better post office FD or bank FD?

The Post Office Time Deposit Account (TD) is much better than bank FD. In this, you get 6.7 per cent interest for five years. One of the most preferred investments of post office is Time Deposit Scheme.

Which scheme is best in Post Office 2021?

The post office’s Sukanya Samriddhi Account scheme is currently getting the highest interest rate of 7.6%. In this scheme being run for girls, it will take about 9.47 years to double the money..

How much amount of FD interest is tax free?

Banks or post offices deduct tax or TDS when the aggregate interest income on all fixed deposits exceeds Rs 40,000 per financial year. The limit is Rs 50,000 in case of senior citizens.

How much SBI FD is tax free?

The SBI Tax Saving Fixed Deposit Scheme offers deposits the opportunity to earn an attractive rate of interest on lump-sum amounts up to Rs. 1.5 lakh while also availing tax deductions of up to Rs. 1.5 lakh (including other exemptions in this category as per the Income Tax Act, 1961).

Is Post Office income taxable?

Post Office Monthly Income Scheme does not offer any tax rebate under section 80C. There is no TDS on the Post Office MIS, but the interest income is taxable in your hands.

What is rate of interest in Post Office FD?

Features Table of Post Office Fixed Deposit

Particulars	Details
Minimum Deposit Amount	Rs. 1,000
Interest Rates	5.5% – 6.7%
Interest Payment	Annually
Mode of Payment	Cash/Cheque

What is the interest of 5 lakh in post office?

6.6% p.a.
5 lakh. Annual Interest Rate is 6.6% p.a. Tenure is 5 years.

Are there any tax saving schemes for post office?

Post Office Time Deposit (TD) It is one of the prominent post office schemes for tax exemption. This plan is a lot like a bank fixed deposit. Investors can make deposits of different tenure like 1, 2, 3 and 5 years.

Do you pay tax on fixed deposit at post office?

While post offices also allow depositors to use the 5-year deposit window, the customer services of a bank are a class apart. The interest earned on these FDs is not tax-free. Most investment avenues are taxed at the end of maturity. In this case, too, the tax rate applicable is based on the depositor’s tax bracket.

How is interest calculated on post office savings account?

Investments made under this post office tax saving scheme qualify for tax benefits under section 80C. From 01.07.2019, interest is calculated on investments under this account at 8.4% annually. Investing in this post office saving scheme for tax benefit requires individuals to pay the entire investment amount at once.

How does 5 year tax saving bank Fixed Deposit Work?

While the 5-year Tax Saving Bank Fixed Deposit is the only tax saving investment that comes with section 80C benefit and allows fixed interest to be received either monthly or quarterly, the unique feature in NSC is that the interest accrued annually is deemed to be reinvested ( for initial four years) under Section 80C of the I-T Act.