March 31 deadline: Save up to Rs 1.5 lakh in taxes with THESE Post Office schemes

These include the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC), Senior Citizen Savings Scheme (SCSS), and Time Deposits.

As the financial year 2024-25 nears its end, taxpayers under the Old Tax Regime must finalize their tax-saving investments by March 31, 2025. Under Section 80C of the Income-tax Act, 1961, individuals can claim deductions on investments up to Rs 1.5 lakh, making it crucial to choose the right savings instruments.

Government-backed Post Office schemes for tax benefits

The Post Office offers several secure small savings schemes that qualify for tax deductions. These include the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC), Senior Citizen Savings Scheme (SCSS), and Time Deposits. Each scheme provides guaranteed returns and varying interest rates, making them reliable investment options.

Public Provident Fund (PPF)

The PPF allows individuals to invest up to Rs 1.5 lakh annually, with a current interest rate of 7.1%. Contributions to this scheme are tax-deductible under Section 80C, and both the interest earned and maturity amount are tax-free, making it one of the most attractive long-term investment options.

Sukanya Samriddhi Yojana (SSY)

Designed to promote savings for a girl child's education and marriage, SSY offers a lucrative interest rate of 8.2%. Parents or guardians can invest up to Rs 1.5 lakh per year and claim the amount under Section 80C, ensuring long-term financial security for their daughters.

National Savings Certificate (NSC)

The NSC is a five-year investment scheme offering a 7.7% interest rate. While the interest earned is taxable, it is compounded annually and paid at maturity, allowing investors to benefit from steady growth while enjoying tax deductions under Section 80C.

Senior Citizen Savings Scheme (SCSS)

Tailored for individuals above 60 years of age, SCSS provides an impressive interest rate of 8.2%, with a maximum permissible investment of Rs 30 lakh. This scheme is ideal for retirees looking for assured income along with tax benefits under Section 80C.

Five-year time deposit

The Post Office also offers a five-year Time Deposit scheme, similar to a fixed deposit, with a current interest rate of 7.5%. Investments in this scheme qualify for tax deductions up to Rs 1.5 lakh under Section 80C, providing another safe avenue for tax planning.