look news india
Post Office People invest in most of the schemes thinking that they will get tax exemption. But this does not happen with every scheme, so if you are planning to invest in Post Office schemes for tax exemption, then first know about those 5 popular schemes in which you do not get the benefit of 80C.
Post Office Monthly Income Scheme
Post Office Monthly Income Scheme helps you earn interest on your deposits every month. Currently, it is offering 7.4% interest. The interest received under this scheme is taxable.
Farmers Development Letter
Kisan Vikas Patra is a very old and popular scheme of the post office. In this scheme, your investment is guaranteed to double in 115 months. It offers an interest rate of 7.5% per annum. You do not get tax exemption in this scheme.
Post Office FD
Post Office FD is also known as Post Office TD. This scheme is run for a period of 1, 2, 3 and 5 years. The interest rate also varies according to different periods. There is no tax benefit on the period of 1, 2 and 3 years, but tax benefits can be availed under 80C on the period of 5 years. 5-year FD is also called tax free FD.
Mahila Samman Savings Certificate
Mahila Samman Savings Certificate Scheme is run for women so that they can be encouraged to save by giving them better interest. This deposit scheme with a tenure of two years is getting interest at the rate of 7.5 percent. Investment under this scheme cannot be availed as exemption under Section 80C of the Income Tax Act.
Post Office Rd.
Post Office RD is considered a very good scheme for investing a fixed amount every month. Investment in this scheme has to be made for 5 years. Currently, this scheme is giving interest at the rate of 6.7 percent. There is no tax exemption on RD. Tax is levied on the interest received on this.