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Post office scheme: If you are thinking of investing in government schemes without taking risks in stock market or mutual funds and looking for investment options like SIP, in which the risk is almost no, the post office recording deposit can prove to be suitable for you. In this scheme, you can start investing from just 100 rupees. It has no maximum limit.
Any person can plan an investment under the post office RD Scheme. Even a minor can open an account in it. Any minor at the age of 10 can open an account with the help of his parents. On completion of 18 years, the minor will have to fill a new KYC and new account opening form. This account can be opened through mobile banking or e-banking facility.
Rules for depositing monthly installments
The first monthly installment will be payable while opening the account and this deposit will be equal to the value of the account. If the account calendar is opened before the 16th of the month, the next deposit amount will be deposited by the 15th of each month and if the account calendar is opened after the 16th of the month and after the final workday, the deposit will be deposited between the 16th of each month and the final workday.
Five years maturity
If you open an account under the RD scheme, then your account maturity will be completed in 5 years. If you want, you can increase it further for 5 years. Also, if you want to close it in the middle, you can close it after 3 years of opening an account. If the account holder dies, the nominee can claim it. Also, if the nominee wants, it can continue.
Tax Rules on RD
Investment in Post Office RD is eligible for tax deduction to a limit of ₹ 1.5 lakh per year under Section 80C of the Investment Income Tax Act, 1961. However, the TDS rules apply to the interest earned, that is, you have to give TDS. If you are earning more than ₹ 10,000 per year from interest, then you have to pay 10 percent, but if you are unable to provide PAN, it will be 20 percent.
You will also get a loan.
After the account remains active for at least 1 year and after accumulating 12 months installments in the account, the depositor can take a loan of up to 50 percent of the amount deposited in the account. If you want, you can repay the loan in lump sum or monthly installments. As per the rules of the scheme, 2 percent simple interest will also have to be paid in addition to the interest rate applicable to the loan account. If the loan is not paid until the account is closed, the outstanding amount will be recovered from the deposit account after the account is closed.
How will you get a profit of 35 lakhs?
If you invest Rs 50,000 every month in this post office scheme, then you will get an annual interest at the rate of 6.7 percent. That is, you can earn Rs 5,68,291 from interest, which will come under the scope of TDC deduction. At the same time, if you deposit Rs 30,00,000 in 5 years, then after five years you will get Rs 35,68,291.