Post office Saving Scheme: Using these saving schemes, an investor can claim a deduction up to Rs. 1.5 lakh in a financial year under Income Tax Act

India Post or Department of Posts, which runs the postal network of the country, offers nine saving schemes with different interest rates. Investment in some of the schemes also qualify for income tax benefits, said India Post. The schemes which offer income tax deduction are Time Deposit (TD), Senior Citizen Savings Scheme (SCSS), Public Provident Fund (PPF), National Savings Certificates (NSC). Using these saving schemes, a person can claim a deduction up to Rs. 1.5 lakh in a financial year from taxable income under Section 80C of the Income Tax Act, 1961.
Here are post office saving schemes that offer tax benefits:

Time Deposit Scheme: Investment in time deposits (TD) of one-year, two-year and three-year maturity periods fetch an interest of 7 per cent. Five-year time deposit account offers a return of 7.8 per cent. The interest is payable annually but calculated quarterly. The investment under 5-year TD qualifies for the benefit of Section 80C of the Income Tax Act, 1961, according to India Post website, indiapost.gov.in.

Senior Citizen Savings Scheme: A person of the age of 60 years or more is eligible for the scheme. The scheme offers an interest rate of 8.7 per cent per annum. Tax deducted at source (TDS) is deducted on interest, if the amount is more than Rs. 10,000 per annum. Investment under this scheme qualifies for the benefit of Section 80C of the Income Tax Act, said India Post.

15-Year Public Provident Fund Account: The scheme offers an interest rate of 8 per cent per annum, which is compounded yearly. Investors can open this account with Rs. 100 but needs to deposit a minimum of Rs. 500 in a financial year. The maximum limit in a financial year is Rs. 1,50,000. Deposits under the scheme qualify for deduction under Section 80C of Income Tax Act, noted India Post. The interest earned is also tax-free.

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National Savings Certificates: The NSC fetches an interest rate of 8 per cent per annum and deposits under it also qualify for deduction under Section 80C of the Income Tax Act. This interest is compounded annually but payable at maturity. An NSC of Rs. 100 will offer Rs. 146.93 on maturity after five years, according to India Post.