India Submit gives a number of small financial savings schemes to assist taxpayers save revenue tax. In case you are nonetheless submitting taxes beneath the Previous Tax Regime, it’s best to full all tax-savings investments for FY25 earlier than March 31, 2025.
India Submit gives 5 small financial savings schemes that can be utilized to save lots of revenue tax beneath the Previous Tax Regime.(ANI)
Underneath Part 80C of the Earnings Tax Act 1961, taxpayers beneath the Previous Tax Regime can declare tax deductions on as much as ₹1.5 lakh of their complete revenue.
Submit Workplace Public Provident Fund (PPF) scheme
Underneath this scheme, deposits might be made in lump sum or 12 installments and a joint account will also be opened. The maturity interval is 15 years, however the identical might be prolonged inside one yr of maturity for an additional 5 years, and so forth.
Nonetheless, untimely closure of the PPF account is just not allowed earlier than 15 years. The curiosity on the deposits is totally tax-free, and withdrawal is permissible yearly from the seventh monetary yr from the yr of opening the account. Presently, the Submit Workplace PPF account is providing 7.1% curiosity.
Submit Workplace Sukanya Samriddhi Yojana (SSY)
This scheme permits the opening of 1 account within the identify of a woman little one as much as the age of 10 years. A authorized or pure guardian can open a most of two accounts within the identify of two completely different feminine youngsters.
The Sukanya Samriddhi Yojana accounts might be closed after the lady is 21 years previous. If the account is just not closed at the moment, the deposited quantity will proceed to earn curiosity. SSY account is presently providing 8.2% curiosity, greater than most financial institution FDs.
Submit Workplace Nationwide Financial savings Certificates (NSC)
This scheme is designed particularly for presidency and salaried workers and businesspersons. It doesn’t have a most restrict for funding and no TDS. NSCs can be utilized as collateral safety to get financial institution loans.
The NSC account matures in 5 years, and it’s presently providing 7.7% curiosity. The curiosity from the scheme is payable at maturity.
Submit Workplace Senior Citizen Financial savings Scheme (SCSS)
This scheme is open to folks aged above 60 years. Moreover, folks aged between 55 and 60 years who’ve retired on superannuation or voluntarily, may open an account beneath this scheme. The maturity interval is 5 years. Senior residents are allowed to take a position as much as ₹30 lakh on this scheme, which is presently providing 8.2% curiosity.
5- yr Submit Workplace Time Deposit
That is like every other 5-year tax-saving fastened deposit plan supplied by banks. Presently, the 5-year time deposit within the put up workplace might be booked at 7.5% curiosity. Deposits beneath this scheme qualify for deduction beneath part 80C, topic to a restrict of ₹1.5 lakh in a monetary yr.
Since these schemes are backed by the central authorities, there’s a full assure on returns.