Do you prefer Post Office schemes over banks? Then today’s article is just for you. Today we are going to discuss Post Office’s one of the most popular schemes. Which is a time deposit? The post office’s small savings scheme, ‘Time Deposit,’ is a better scheme for tax savings. A Post Office Time Deposit Account can be opened at any post office in the country. You can save tax on deposits in the scheme for 5 years.
Time Deposit Scheme
Currently, there are two types of tax regimes in the taxation system. New Tax Regime and Old Tax Regime. Tax deductions under Section 80C can be claimed only in the old tax regime.
The Post Office Small Savings Scheme is quite popular among Indians due to being risk-free and easy. In this, the post office time deposit scheme is similar to the fixed deposits of banks. A Post Office Time Deposit Account can be opened in any branch for a period of 1, 2, 3, and 5 years. In this, the benefit of tax deduction can be taken on a deposit of 5 years.
Post Office TD: Tax exemption up to 1.5 lakh
According to Section 80C of the Income Tax Act 1961, a tax deduction of up to Rs 1.5 lakh can be claimed on a 5-year deposit. For risk-averse investors, investing in postoffice fixed deposits is a preferred option.
An account can be opened online as well as offline through post office netbanking. Post Office Time Deposit Account can be done singly or jointly (up to 3 members). It can be transferred from one post office to another. Minors can open an account under Legal Guardian. More than one account can be opened in any post office. There is a nomination facility in the account.
A POTD account has the facility to withdraw money before or before maturity. This is called premature withdrawal. According to the rules, pre-mature withdrawal can be done after 6 months from the date of opening the account. If the withdrawal is made between a period of 6-12 months from the date of opening the account, interest will be accrued based on the rates of the post office savings account.
Post Office TD: Also Know
A post office time deposit account can be opened for a minimum of Rs 1,000. After this, you can deposit as much as you want in multiples of 100 rupees.
If you do not withdraw money after maturity, there is no interest on the amount deposited during that period.
The minor should change the account in his name after completing 18 years.
If the deposit is made through check, then the date of receipt of the check will be the starting date of TD, and the interest will be calculated from this date itself.
