How do investors save tax at the post office?

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How do investors save tax at the post office?

Savings Schemes under Post Office Investments

  1. Post Office Time Deposit Account (TD)
  2. Post Office Savings Account.
  3. Five Years Post Office Recurring Deposit Account (RD)
  4. Post Office Monthly Income Scheme Account (MIS)
  5. Public Provident Fund (PPF) Account for 15 Years.
  6. Senior Citizen Savings Scheme (SCSS)

Is post office term deposit tax saving?

You can claim income tax deduction under Section 80C of the Income Tax Act of India, 1961, on the deposit you have made in the 5-year fixed deposit account. If the interest you earn on the FD account exceeds Rs. 40,000 per financial year for regular customers, the tax may be deducted at source by the Post Office.

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Is Post Office good investment?

Post Office Recurring Deposit Scheme is one of the most popular investment schemes offered by Post Office. Currently, India Post Office is offering a 5.8\% annual interest on investments in Post Office Recurring Deposit (RD). The invested sum in the Post Office Recurring Deposit Scheme doubles in 12.41 years.

Is post office savings bank interest tax free?

Speaking on the income tax exemption limit applied for post office savings account; Mumbai-based tax and investment expert Balwant Jain said, “Interest on savings bank account is presently exempt under section 10(15)(i) of the income tax act, vide notification no. G.S.R. 607(E) dated 9 June 1989.

Is TD in post office taxable?

There is no tax benefit on the deposits with less than five-year tenure. The five-year deposit qualifies for income-tax deduction on the sum deposited under Section 80C. You can open the account at any head or general post office.

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Is post office monthly income scheme taxable?

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

How much amount in savings account is tax-free?

You can avail deduction of up to Rs 10,000 on the total savings account interest income earned. This deduction can be availed under Section 80TTA of the Income Tax Act and is available to an Individual and HUF. If your total interest income is below Rs 10,000 then you do not have to pay tax on it.

What is the saving interest in post office?

4\% per annum
The current interest rate offered on the Post Office Savings Account is 4\% per annum. It is paid annually, unlike the Monthly Income Scheme where the interest is paid monthly.

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Are post office schemes taxable?

Deposits made under this scheme are tax-exempted under section 80C of the Income Tax Act. Additionally, the interest earned is completely tax-free.