ITR Filing 2025: Check Out 5 Post Office Schemes That Lets You Save Rs 1.5 Lakh On Income Tax Under 80C; Do This Before March 31

Indian investors prefer post office savings schemes due to their reliability and risk-free returns, supported by a sovereign guarantee. Post office offers different types of saving schemes to investors. 

 

Some schemes offer tax-saving benefits under Section 80C of the Income-tax Act, 1961, allowing deductions up to Rs 1.5 lakh in each financial year. The Section 80C exemption of up to Rs 1.5 lakh annually is only available under the old income tax regime. There is no Section 80C exemption benefit for those choosing the new income tax regime.

Read on to know about the Post Office Savings Schemes that provide tax benefits under Section 80C of the Income Tax Act

 

PPF is a long-term savings scheme offering tax-free returns under 80C. Investors must deposit a minimum of Rs 500, while the annual ceiling stands at Rs 1.5 lakh per financial year. According to the Income Tax Act, the interest earned is tax-free. For the January- March 2025 quarter, the PPF interest rate is 7.1%.

The SCSS is a retirement savings plan that offers tax benefits. The minimum deposit required of investors is Rs 1,000, while the maximum is Rs 30 lakh. Investments up to Rs 1.5 lakh are eligible for a tax deduction under Section 80C. If the total interest in all SCSS accounts during a fiscal year exceeds Rs 50,000, the interest is taxable. For the January–March 2025 quarter, the interest rate on SCSS is 8.2% annually.

A government-initiated program for girls, SSY offers significant profits along with tax benefits. The annual investment limit for participants is between Rs 250 and Rs 1.5 lakh, with investments up to Rs 1.5 lakh being eligible for Section 80C deductions. According to the Income Tax Act, the maturity proceeds and accrued interest are both tax-free. The interest rate offered by SSY for the January–March 2025 quarter is 8.2%.

NSC is a government-backed investment program that offers tax benefits and a fixed interest rate to help people save money. The initiative accepts deposits starting at Rs 1,000 with no maximum limit, though the tax benefits under 80C only apply up to Rs 1.5 lakh. With a five-year term, while interest is subject to taxation, the interest can be reinvested to receive tax benefits during the initial four years. The interest rate offered by NSC for the January–March 2025 quarter is 7.7%.

POTD is an investment savings account plan that offers 1-year, 2-year, 3-year, and 5-year account types. An account can be opened with a minimum investment of Rs 1000, with no upper limit. A five-year TD investment is eligible for the benefit of Section 80C of the Income Tax Act of 1961. The five-year POTD interest rate for the January–March 2025 quarter is 7.5%.