Tax Saving Scheme

To begin planning your investments carefully, it is advisable to begin reading about all the various schemes and options available for you

The government has a range of investment vehicles for people who prefer to put aside small amounts over a period of time

Equity-Linked Savings Scheme (ELSS): Apart from offering tax-saving benefits, ELSS is a diversified equity mutual fund and also serves the purpose of long-term capital growth

Income tax benefits are available on Time Deposit (TD), Senior Citizen Savings Scheme (SCSS), Public Provident Fund (PPF) and National Savings Certificates (NSCs).

NPS offers two types of accounts: Tier 1 and Tier 2. While the Tier 1 NPS account is strictly a pension account which doesn't allow withdrawals, while the Tier 2 account - known as investment account - is a voluntary saving account associated with Permanent Retirement Account Number (PRAN).

NSC interest rate: The minimum amount required for opening an NSC account is Rs 1,000 and in multiple of Rs 100 thereof and there is no maximum limit for amount that can be invested in an NSC account.

The PPF scheme, which was introduced by the National Savings Organization in 1968 to mobilize small savings, offers an investment avenue with decent returns coupled with income tax benefits, according to SBI's website- sbi.co.in.

SBI's Flexi Deposit scheme is a variant of recurring deposit (RD) which enables the account holder to contribute a variable amount to the corpus instead of a fixed instalment.

A minimum deposit of Rs 500 per financial year is required in order to invest in a PPF account. The maximum sum allowed is Rs 1.5 lakh per financial year. The deposit can be made in whole or in 12 instalments.

The post office public provident fund account offers an interest of 7.9 per cent per annum, which is compounded yearly.

Investments under the post office senior citizen savings scheme (SCSS) also qualify for the benefit of Section 80C of the Income Tax Act.

The minimum tenure for SBI Tax Savings Scheme, 2006, is five years which can go up to a maximum of 10 years.

Post office NSC interest rate: The scheme offers a return of 7.9 per cent, which is compounded annually but payable at maturity.

India Post pays interest at the rate of 4 per cent per annum on deposit in its savings account in the current quarter, according to India Post. A savings account can also be opened jointly by two or three adults. However, only one savings account can be opened in one post office at a time.

Using these post office saving schemes, an investor can claim a deduction up to Rs. 1.5 lakh in a financial year from taxable income.

To begin planning your investments carefully, it is advisable to begin reading about all the various schemes and options available for you

The government has a range of investment vehicles for people who prefer to put aside small amounts over a period of time

Equity-Linked Savings Scheme (ELSS): Apart from offering tax-saving benefits, ELSS is a diversified equity mutual fund and also serves the purpose of long-term capital growth

Income tax benefits are available on Time Deposit (TD), Senior Citizen Savings Scheme (SCSS), Public Provident Fund (PPF) and National Savings Certificates (NSCs).

NPS offers two types of accounts: Tier 1 and Tier 2. While the Tier 1 NPS account is strictly a pension account which doesn't allow withdrawals, while the Tier 2 account - known as investment account - is a voluntary saving account associated with Permanent Retirement Account Number (PRAN).

NSC interest rate: The minimum amount required for opening an NSC account is Rs 1,000 and in multiple of Rs 100 thereof and there is no maximum limit for amount that can be invested in an NSC account.

The PPF scheme, which was introduced by the National Savings Organization in 1968 to mobilize small savings, offers an investment avenue with decent returns coupled with income tax benefits, according to SBI's website- sbi.co.in.

SBI's Flexi Deposit scheme is a variant of recurring deposit (RD) which enables the account holder to contribute a variable amount to the corpus instead of a fixed instalment.

A minimum deposit of Rs 500 per financial year is required in order to invest in a PPF account. The maximum sum allowed is Rs 1.5 lakh per financial year. The deposit can be made in whole or in 12 instalments.

The post office public provident fund account offers an interest of 7.9 per cent per annum, which is compounded yearly.

Investments under the post office senior citizen savings scheme (SCSS) also qualify for the benefit of Section 80C of the Income Tax Act.

The minimum tenure for SBI Tax Savings Scheme, 2006, is five years which can go up to a maximum of 10 years.

Post office NSC interest rate: The scheme offers a return of 7.9 per cent, which is compounded annually but payable at maturity.

India Post pays interest at the rate of 4 per cent per annum on deposit in its savings account in the current quarter, according to India Post. A savings account can also be opened jointly by two or three adults. However, only one savings account can be opened in one post office at a time.

Using these post office saving schemes, an investor can claim a deduction up to Rs. 1.5 lakh in a financial year from taxable income.