Income Tax News: While many post office schemes offer the attractive benefit of tax exemption under Section 80C of the Income Tax Act, it’s important to be aware that not all schemes do. This article highlights some popular post office schemes that do not qualify for this tax benefit.
Schemes Excluded from Section 80C Exemption
Mahila Samman Saving Certificate
Targeted towards women investors, the Mahila Samman Saving Certificate offers an attractive interest rate of 7.5 percent on a two-year investment of Rs 2 lakh. Despite its benefits, it’s important to note that investments in this scheme do not qualify for the Rs 1.5 lakh exemption under Section 80C of Income Tax.
National Savings Time Deposit Scheme
For investments ranging from 1 to 3 years, the National Savings Time Deposit Scheme does not provide tax exemption under Section 80C of Income Tax. However, investors opting for the five-year tenure can avail themselves of the Rs 1.5 lakh rebate.
National Savings Recurring Deposit Account (RD)
Investors committing to the National Savings Recurring Deposit Account for a five-year period receive a competitive interest rate of 6.7 percent. Nonetheless, it’s imperative to understand that investments in this scheme do not qualify for tax exemption under Section 80C of Income Tax.
Post Office Monthly Income Scheme
Despite its appeal as a source of regular income, investments in the Post Office Monthly Income Scheme do not offer the Rs 1.5 lakh exemption under Section 80C of Income Tax.
Kisan Vikas Patra Scheme
The Kisan Vikas Patra Scheme attracts investors with its enticing 7.5 percent interest rate. However, akin to other schemes mentioned, investments here do not grant tax exemption under Section 80C of Income Tax.
Always check the eligibility criteria before investing in any post office scheme to understand the associated tax implications. Consulting a financial advisor can further help you make informed investment decisions based on your specific financial goals and tax situation.
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