8 Income Tax Saving Schemes with Good Returns & Ample Tax Benefits
Tax Saving Schemes Available for Assessment Year 2018-19 under Income Tax:
Serial No. Tax Saving Schemes Rate of Interest Limit of Investment Exemption under Income Tax
1. 1,2,3 and 5 year Time Deposit • Interest @6.6%, 6.7%, 6.9% and 7.4% per annum (Calculated at quarterly compounding basis) • Minimum Amount-Rs. 200
• No Maximum Deposit Limit
• Minor can also open the time deposit. • Interest is chargeable to tax.
• Investment in 5 year time deposit scheme will qualify for deduction under 80C
2. 5 Year National Savings Certificates VIII Issue(NSC) • Interest @ 7.6% per annum, Compound yearly
• Payable on Maturity • No limit on deposit.
• Interest is chargeable to tax on accrual basis.
• Investment and interest accrued in first 4 year will qualify for deduction under 80C
3. 5 Year Post office Recurring Deposit(RD) • Interest @ 6.9% per annum, compounded quarterly
• Payable on Maturity. • Minimum Amount-Rs. 10 per month. • Interest is chargeable to tax.
4. 15 year Public Provident Fund(PPF) • Interest 7.6% per annum(Compounding annual basis)
• Payable on Maturity. • Minimum Amount-Rs. 500
• Maximum- Rs. 1,50,000 in every financial year • Interest is total exempt under section 10.
• Investment will qualify for deduction under 80C
5. Post office Saving Bank Account Interest @ 4% per annum. • Minimum Amount-Rs. 20
• Maximum – Rs. 1, 00,000 for individual and Rs. 2,00,000 for Joint Account. • Interest is exempt up to Rs 3,500 for Individual and Rs. 7,000 for Joint Account.
6. 7 years Saving Bonds • 7.75% Interest
• Payable Half yearly and compounded in rest half yearly. • No Minimum and Maximum Limit. • Interest is chargeable to tax.
7. 5 year Senior Citizen Savings Scheme • Interest @ 8.3% per annum payable quarterly. • Maximum- Rs. 15 Lakh • Interest is chargeable to tax.
• Investment will qualify for deduction under 80C
8. Sukanya Samriddhi Account Interest @ 8.1% per annum, compounded yearly. • Minimum Amount-Rs. 1,000
• Maximum- Rs. 1,50,000 in every financial year • Interest is total exempt under section 10.
• Investment will qualify for deduction under 80C more
Serial No. Tax Saving Schemes Rate of Interest Limit of Investment Exemption under Income Tax
1. 1,2,3 and 5 year Time Deposit • Interest @6.6%, 6.7%, 6.9% and 7.4% per annum (Calculated at quarterly compounding basis) • Minimum Amount-Rs. 200
• No Maximum Deposit Limit
• Minor can also open the time deposit. • Interest is chargeable to tax.
• Investment in 5 year time deposit scheme will qualify for deduction under 80C
2. 5 Year National Savings Certificates VIII Issue(NSC) • Interest @ 7.6% per annum, Compound yearly
• Payable on Maturity • No limit on deposit.
• Interest is chargeable to tax on accrual basis.
• Investment and interest accrued in first 4 year will qualify for deduction under 80C
3. 5 Year Post office Recurring Deposit(RD) • Interest @ 6.9% per annum, compounded quarterly
• Payable on Maturity. • Minimum Amount-Rs. 10 per month. • Interest is chargeable to tax.
4. 15 year Public Provident Fund(PPF) • Interest 7.6% per annum(Compounding annual basis)
• Payable on Maturity. • Minimum Amount-Rs. 500
• Maximum- Rs. 1,50,000 in every financial year • Interest is total exempt under section 10.
• Investment will qualify for deduction under 80C
5. Post office Saving Bank Account Interest @ 4% per annum. • Minimum Amount-Rs. 20
• Maximum – Rs. 1, 00,000 for individual and Rs. 2,00,000 for Joint Account. • Interest is exempt up to Rs 3,500 for Individual and Rs. 7,000 for Joint Account.
6. 7 years Saving Bonds • 7.75% Interest
• Payable Half yearly and compounded in rest half yearly. • No Minimum and Maximum Limit. • Interest is chargeable to tax.
7. 5 year Senior Citizen Savings Scheme • Interest @ 8.3% per annum payable quarterly. • Maximum- Rs. 15 Lakh • Interest is chargeable to tax.
• Investment will qualify for deduction under 80C
8. Sukanya Samriddhi Account Interest @ 8.1% per annum, compounded yearly. • Minimum Amount-Rs. 1,000
• Maximum- Rs. 1,50,000 in every financial year • Interest is total exempt under section 10.
• Investment will qualify for deduction under 80C more
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View all 8 comments Below 8 comments
Good Information is given. My comments are : 1. Please note that ELSS Mutual Funds have been giving better returns than above sources, however one should consider Stock market situation & risks. Those who can afford should invest at least 25-30% in Mutual Funds to guard against inflation. 2. Most of the people agree that one should stay away from NPS, since Tier1 returns are barely 3-4%. Citizens have no alternative to get respectable returns from Tier1 part. All Citizens should request the Finance Minister Finance Secretary to abolish Tier1 part to make NPS practicable. 3. Similarly the Income Tax on Debt funds, Fixed period Maturity funds should be at par with Equity funds at least for Senior citizens in view of falling interest rates. 4. Infrastructure bonds have been done away by previous government without any reason. If employments are to increase the government needs to spend more money on Infrastructure. Finance Ministry should allow additional taxfree investment upto Rs 2Lakh. This will match at least Ceiling decided 10-15 years ago on taxfree savings & its true value due to rising inflation rates. more
May 07
Dear Pande Sir Investment in SCSS is eligible under 80 C. Please reconcile with your earlier comment Sent to me . Serial 7 above may be seen above. more
May 04
PM vaya vridh Yojana ia also another good scheme.8% interest and for 10 years assured.Max 15 Lacs. more
May 04
