Is post office FD tax free?

Current post office FD interest rates for the quarter ending June 30, 2023 range from 6.8% to 7.5%. As a part of the government's National (Small) Savings Schemes project, India Post offers a variety of fixed deposit (FD) schemes, also known as time deposits (TD). I will be explaining here what are

tax saver fd interest rates in post office

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What is the tax on FD in post office?

The company in charge of running the post offices in our nation, India Post, offers post office FD interest rates ranging from 6.80% to 7.50% p.a. for terms lasting between one year and five years. For the general public, the interest rate on Post Office Tax Saving FDs is 7.50% per annum.

Is the post office tax-free?

Saving taxes is the main advantage of the post office deposit programme. The interest from the post office deposit plan is eligible for tax deductions under section 80C of the income tax code. Only investments made for a period of five years are eligible for tax deductions. Under this clause, you as a taxpayer may deduct up to Rs 1,50,000 from your taxes. The scheme's interest payments are subject to tax deductibility at the source. If TDS is not deducted, you must make a clear declaration of this in your income tax return.

The interest on post office fixed deposits is tax-free for senior citizens in India. According to section 80TTB of the income tax act, the amount of interest income that is exempt from taxation for them is capped at Rs. 50,000. This tells you is post office FD tax free or not.

What are the features of post office tax saver FD?

• The amount that must be deposited is very flexible under the system. There is no maximum amount that may be deposited into a post office fixed deposit account, the minimum opening deposit is Rs. 200. Even the conversion of a single account into a joint account and the reverse is simple.

• There are no restrictions on how many accounts can be opened at the post office as fixed deposit accounts.

• The minor's name may be used to open the account, and the minor's parents or legal guardians may manage it.

• One post office to another can get the account.

• While opening a post office fixed deposit account or with an existing account, another person may be nominated.

I must have cleared your query about tax saver FD interest rates in post office.