From PPF to SSY there are several post schemes that offer tax-saving benefits on Income Tax Under 80C. These Post-Office Savings Scheme not only offer guaranteed returns but also help you claim tax deductions of up to ₹1.5 lakh under Section 80C. If you’re planning to invest, don’t wait any longer — the deadline to avail these tax-saving benefits is March 31, 2025!
It is important to know that the Section 80C tax exemption of up to ₹1.5 lakh per year is only available under the old income tax regime. Those choosing the new income tax regime won’t get any Section 80C tax benefits.
If you are following the old tax regime, make sure to complete your tax-saving investments for FY 2024-25 before March 31, 2025.
The Post Office Scheme that provides Section 80C tax benefits:
PPF (Public Provident Fund)
Post office PPF (Public Provident Fund) is a most popular long term investment option in India, which offers tax free returns under 80 C. This is same type of PPF accounts which offered by mainstream banks like SBI and HDFC Bank. PPF not only allows income tax payer deduction for contribution under Section 80C but also accrued interest and maturity proceeds remain tax-free. Currently the interest rate of PPF account for the January-March is 7.1%. PPF maintain EEE (exempt, exempt, exempt) status.
National Saving Certificate (NSC)
National Saving Certificate (NSC) is a fixed-income investment with granted returns and tax benefits. The tenure of the NCS accounts is five years. These investments will also get up to ₹1.5lakh per financial year qualify for tax deductions under Section 80C. The minimum for this account is Rs 1000, and while there is no upper limit, only ₹1.5 lakh is eligible for tax benefits. The interest rate for January-March 2025 quarter is 7.7%.
Sukanya Samriddhi Yojana (SSY)
The Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme, where only girl children’s accounts can be open. In SSY an accounts can be opened in the name of girl below of 10 years age. The minimum investments for this account are Rs 250. Maximum investment is Rs 1.5 lakh per year. You will get Investments up to ₹1.5 lakh are deductible under Section 80C. SSY falls under the EEE (Exempt, Exempt, Exempt) category which means the investment, interest and maturity proceeds are all tax-exempt. With all this benefits the Scheme makes a highly beneficial long-term savings option for securing a girl’s future. The interest rate of SSY for January-March 2025 is 8.2%.
Senior Citizens Saving Scheme (SCSS)
The Senior Citizens Saving Scheme is a retirement saving scheme backed by the government which provides high returns with tax benefits. The minimum investments for this account is Rs 1000 and maximum is Rs 30 lakh. These investments will also get up to ₹1.5lakh per financial year qualify for tax deductions under Section 80C. The interest rate for this scheme is 8.2% per annum.
Post Office Time Deposit (POTD)
The Post Office Time Deposit (POTD) is a savings accounts which offers fixed investments option of 1 year, 2 years, 3 years and 5 years. But only five years investment will qualified for a tax benefit under Section 80C. The minimum investments is Rs 1,000 in this account. The interest rate for a 5-year POTD from January to March 2025 is 7.5%.
| Scheme Name | Tenure | Benefits under Section 80C | Interest Rate |
| PPF | 15 years | Yes (tax Free) | 7.1% |
| NSC | 5 years | Yes (interest taxable) | 7.7% |
| SSY | 21 years | Yes (Tax Free) | 8.2% |
| SCSS | 5 years | Yes (interest taxable) | 8.2% |
| POTD | 5 yeasr | Yes (interest taxable) | 7.5% |
