Save Income Tax in 2025 : The Indian Postal Departmental offers small savings schemes that help the taxpayers to save the tax under the old tax regime for FY 2024-25. These Postal schemes are backed by the government of India to guaranteed returns and tax benefits under Section 80C of the Income Tax Act, 1961 .
Save Income Tax in 2025
Top 5 Post Office Tax Saving Schemes
| Scheme Name | Interest Rate (Jan-Mar 2025) | Lock-in Period | Tax Benefit Under 80C | Tax on Interest |
| Public Provident Fund (PPF) | 7.1% | 15 years | Up to ₹1.5 lakh | No tax (EEE status) |
| Sukanya Samriddhi Yojana (SSY) | 8.2% | Until girl turns 21 | Up to ₹1.5 lakh | No tax (EEE status) |
| National Savings Certificate (NSC) | 7.7% | 5 years | Up to ₹1.5 lakh | Taxable but can be reinvested |
| Senior Citizen Savings Scheme (SCSS) | 8.2% | 5 years | Up to ₹1.5 lakh | Taxable |
| Post Office Time Deposit (5 Years) | 7.5% | 5 years | Up to ₹1.5 lakh | Taxable |
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1. Public Provident Fund (PPF)
- Minimum Investment: ₹500 per year
- Maximum Investment: ₹1.5 lakh per year
- Tax Benefits: PPF likes EEE (Exempt-Exempt-Exempt) status, meaning deposits, accrued interest, and maturity proceeds are completely tax free.
- Example: If you invest ₹1.5 lakh per year in PPF Account , you save tax under Section 80C and get tax free returns.
2. Sukanya Samriddhi Yojana (SSY)
- Who Can Invest: Parents or Guardians of girl children below 10 years Can Start this Yojana.
- Interest Rate: Currently 8.2%, the highest among small savings schemes.
- Tax Benefits: Investments, interest, and maturity proceeds are fully tax-free (EEE status).
- Example: Investing ₹1.5 lakh annually in SSY can help build a secure financial future for your daughter while saving on taxes.
3. National Savings Certificate (NSC)
- Tenure: 5 years
- Tax Benefits: Investment up to ₹1.5 lakh qualifies under 80C.
- Tax on Interest: Interest earned is taxable but can be reinvested for 80C deduction.
- Example: If you invest ₹1.5 lakh in NSC, you save tax under 80C, and the accrued interest can be reinvested for further deductions.
4. Senior Citizen Savings Scheme (SCSS)
- Eligibility: Individuals above 60 years; retired employees can apply after 55 years.
- Investment Limit: Up to ₹30 lakh.
- Tax Benefits: Investment up to ₹1.5 lakh qualifies for 80C deduction.
- Example: If a senior citizen invests ₹1.5 lakh in SCSS, they get quarterly interest payouts and tax benefits under 80C.
5. Post Office Time Deposit (5-Year FD)
- Minimum Deposit: ₹1000
- Tax Benefits: Investment up to ₹1.5 lakh qualifies for 80C deduction.
- Tax on Interest: Interest earned is fully taxable.
- Example: If you invest ₹1.5 lakh in a 5-year Time Deposit, you get fixed returns at 7.5% and tax deduction under 80C.
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How Much Save Income Tax in 2025 ?
Save Income Tax in 2025 : If you can invest in multiple tax saving schemes the total deduction under Section 80C is capped at ₹1.5 lakh per financial year. So plan your investments Cleverly to maximize returns while saving taxes.
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