Post Office Savings: Tax Benefits#
Tax-Saving Schemes#
Public Provident Fund (PPF)#
- 123 deduction (₹1.5L)
- Interest tax-free
- 15-year maturity
- Partial withdrawal allowed
National Savings Certificate (NSC)#
- 123 deduction
- 5-year lock-in
- Interest taxable annually
- Tax-free at maturity
Kisan Vikas Patra (KVP)#
- Doubles in 10 years
- No 123 benefit
- Interest taxable
Sukanya Samriddhi#
- Girl child benefit
- 123 deduction
- For girl child under 10
Interest Rates (Current)#
| Scheme | Rate |
|---|---|
| PPF | 7.1% |
| NSC | 7.7% |
| KVP | 7.5% |
| Savings | 4% |
Tax Treatment#
- PPF: EEE (exempt-exempt-exempt)
- NSC: EET (taxable at maturity)
- KVP: EET
Conclusion#
Post office schemes offer safe returns with tax benefits.