Post Office Scheme Update: Usually, people consider investing in the stock market and mutual funds as a risk. Many time,s there is a risk of people losing their money, because the stock market depends on the circumstances. This is the reason why people are now finding it appropriate to invest in government schemes instead of trying their hand in the stock market and mutual funds.
You can also collect a good fund by joining the post office schemes, where the investment is also safe. The most important thing is that, along with keeping the money safe, you get its benefit in the future. The post office recurring deposit scheme can prove to be very good. The biggest feature of the scheme is that you can start investing with a total of Rs 100. There is no maximum investment limit in this.
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Features of the post office recurring deposit scheme
Anyone can join the post office recurring deposit scheme. Even a minor can open an account in it. Any child of 10 years of age can create their account in it with the help of their parents. When the age becomes 18 years, the nominee will need to fill out a new KYC fresh opening form. This account can be opened through mobile banking or the e-banking facility. People are getting the benefit of up to 6.7 per cent interest from this scheme. The nominee will get the money in case of death.
If, for any reason, you open an account under the RD scheme, then the maturity of your account will be considered 5 years. You can extend it for another 5 years. Apart from this, if you are thinking of closing it in the middle, then you can close it after 3 years of opening the account. If the account holder dies due to any reason, the nominee will get the benefit.
Along with this, under Section 80C of the Income Tax Act, 1961, up to a limit of 1.5 lakh annually is valid for tax deduction. Apart from this, the rule of TDS also applies to the income from interest. In this, you will need to pay TDS. If you are earning more than Rs 10,000 in interest every year, then you will need to pay 10 per cent tax. If you are unable to provide PAN, then this tax will be applicable at 20 per cent.
Know how to get the benefit of 35 lakhs?
If you invest Rs 50,000 every month in the Post Office Recurring Deposit Scheme, then you will deposit Rs 30 lakh. In this, you can earn Rs 5,68,291 in 5 years based on 6.7 per cent interest every year. This will be available under TDC deduction. In such a situation, you will get a benefit of Rs 35,68,291 in five years.