Other Investments

investment

Other

Investments

Mangla Consulting

National Saving Certificate

National Saving Schemes (NSC) is one of the popular Income Tax Saving schemes which are available throughout the year. It can be operated by single, joint, or minor with his/her parent or guardian. There is a return on this scheme at interest rate of 8%. The minimum investment limitation of the scheme is Rs.100/- and with no upper limit. Other investments can be done in multiple of Rs. 100/-. This scheme has a maturity period of 6 years. It is transferable and also there is a provision of loan on the basis of this scheme. Under section 88 of the Income Tax Act, 1961 any person can take benefit in income tax on amount invested in this scheme.

Public Provident Fund

Under this scheme, there is a return at the interest rate of 8% p.a. The minimum investment limit is Rs. 500/- and maximum limitation is Rs. 70,000/-. It can be opened any time throughout the year. It can be operated either single or jointly. In case of minor, with parent/guardian. There is also a facility of nomination in this scheme. This scheme has a maturity period of 15 years. The first loan can be taken in the third financial year from the date of opening of the account, or up to 25% of the amount at credit at the end of the first financial year. Loan amount can be returned in maximum of 36 installments. A person can withdraw an amount (not more than 50% of the balance) every year. Under Section 88 of Income Tax Act, 1961 there is a provision of tax benefit by investing in this scheme. Interest on this scheme is tax free.

Fixed Deposit

A fixed amount of deposit with the bank which gives a definite amount of interest after a specific period of time to the depositor on their respective deposit.

Post Office Schemes

It is one of the best Income Tax Saving Scheme. It can be operated by either single or jointly. In case of minor, with parent/ guardian. It is available throughout the year. There are several types of post office schemes depending upon the type of investment and maturity period. Post office schemes can be dividend into following categories:

  • Monthly Deposit
  • Saving Deposit
  • Time Deposit
  • Recurring Deposit

Kisan Vikas Patra

Money invested in this scheme doubles in 8 years. There is a minimum investment limitation of Rs.100/- with no upper limit. This scheme is available throughout the year. It can be operated either single or jointly. In case of minor, with parent/ guardian. Facility for nomination is also available under this scheme. Currently there is no tax benefit on investment under this scheme.