Now there is not much time left for the financial year 2023-24 to end. If you want to save tax by investing, then you will have to invest before the end of March, because the new financial year will start from April 1.
If you also want to save tax by investing, then we are telling you about two great schemes.
Money will increase through FD, tax will also be saved
All banks offer tax-saving FD (Fixed Deposit) options to their customers. These include government SBI to private banks like HDFC. In this, interest of 6-8 percent is available depending on the bank and the tenure of the FD. The highest interest is available on FD of 5 years.
Under Section 80C of Income Tax, the customer gets a rebate of up to Rs 1.5 lakh annually on FD of 5 years. If you are a senior citizen, you also get additional interest in FD. However, TDS has to be paid on the interest amount in the FD scheme as per the income tax slab.
National Savings Certificate (NSC)
Investors in NSC get good returns along with tax benefits. This is the reason why people like it a lot as a tax-saving option. Currently, the interest rate on NSC is 7.7 percent. In this, compound interest is given, that is, every interest amount is also added to the principal amount and then interest is also given on that. The investment in this matures after 5 years.
Is FD better or NSC?
It largely depends on your convenience. Both are safe investment options. Both provide the facility to save tax through investment. In such a situation, you can decide on investment according to the interest rate.
If you are a senior citizen, you can get a higher interest in FD. But, if you are a normal citizen, then the NSC interest rate may be best for you.
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