Tax Saving Schemes for A.Y.2019-20 & A.Y. 2020-21

Tax Savings is an effective measure to ensure that people save some of their tax liability in a legal way. There are many investment options which provide deductions to the assessee and some of them are listed below. The tax saving schemes are the one of the part of tax planning. Tax planning is legal and everyone should do it to increase wealth.

National Saving Time Deposits

Tax Saving SchemeNational Saving Time Deposits (Earlier Post Office Time Depoists)
Rate of InterestCheck Here
Investment LimitNo Limit
Tax BenefitsDeduction u/s 80 C Available
DetailsClick Here to Know More

Kisan Vikas Patras (KVPs), 2014 (w.e.f. 23-9-2014)

Tax Saving SchemeKisan Vikas Patras (KVPs), 2014 (w.e.f. 23-9-2014)
Rate of InterestCheck Here
Investment LimitNo Limit
Tax BenefitsDeduction u/s 80 C Available
DetailsClick Here to Know More

Bank Term Deposit Scheme 2006

Tax Saving Scheme5 Years Time Deposit
Rate of InterestInterest 7.8% p.a Depends on Bank
Investment LimitNo Limit
Tax BenefitsDeduction u/s 80 C Available
DetailsClick Here to Know More

National Saving Certificate VIII Issue

Tax Saving Scheme5 Year National Saving Certificates VIII Issue
Rate of InterestCompound (Half-Yearly) Interest @8% p.a.
Investment LimitNo Limit
Tax BenefitsInvestment & accrued interest for first 4 years qualify for deduction u/s 80C. Interest chargeable to tax on accrual basis (No TDS)
DetailsClick Here to Know More

Public Provident Funds

Tax Saving Scheme15 Years Public Provident Fund
Rate of Interest8% p.a. every years but payable at the time of maturity
Investment Limitminimum Rs.500 and maximum Rs.1,50,000
Tax BenefitsInterest totally exempt u/s 10(11) investment qualify during the year allowed for deduction u/s 80C
DetailsClick Here to Know More

Post Office Saving Bank Account 

Tax Saving SchemePost Office Saving Bank Account
Rate of InterestInterest @4% p.a. credited annually
Investment LimitMinimum: Rs.20 and Maximum Rs. 1,00,000 for Individuals, Rs. 2 Lakh for two or more adults jointly in one or more account.
Tax BenefitsDeduction up to Rs.10,000 is available under section 80TTA from the A.Y. 2013-14
DetailsClick Here to Know More

7.75% Saving Taxable Bonds

Tax Saving Scheme7.75% Saving Taxable Bonds
Rate of Interest7.75% payable half yearly or compounded with half yearly rests
Investment LimitNo maximum limit,
Tax BenefitsInterest chargeable to tax (tax to be deducted at source)

Senior Citizen Saving Scheme, 2004 (Post Office)

Tax Saving Scheme5 Year Senior Citizen Saving Scheme 2004
Rate of Interest8.5% per annum payable quarterly
Investment Limitmaximum deposit Rs. 15 lakh
Tax BenefitsInvestments qualifies for deduction u/s 80C
DetailsClick to Know More

Sukanya Samriddhi Account

Tax Saving SchemeSukanya Samriddhi Account
Rate of Interest8.5% p.a. Compounded Yearly
Investment LimitMinimum Rs. 1000, Maximum Rs. 1,50,000
Tax BenefitsInterest totally exempt from tax u/s 10(11A). Investment qualifies for deduction u/s 80C
DetailClick Here to Know More

However, it shall be noted that most of the above mentioned tax saving schemes directly fall under the deductions category of section 80C, where the maximum permissible limit is upto  [Rs. 1, 50, 000 (A.Y. 2017-18 & 2018-19)]. Henceforth, the total amount as a collective of all the available schemes would be taken into consideration. Still one can use medical expenses and other similar expenses to avail further deductions u/s 80D.

7 thoughts on “Tax Saving Schemes for A.Y.2019-20 & A.Y. 2020-21”

  1. can i take benefit of 80TTA+ Sec 10 (15 i) this year?
    10000/- 80TTA 3500/- post saving acc int
    total-13500

    • mam can u explain me, why deduct tds,some dedeuct tds, some not,,,who is lialility ,,if any company dont deduct tds ,,what effect can u explain plz mam

  2. Kindly let me know whether 10,000 reiceve din SB account as interest and Rs.12,000 under Section 80L cane bd deducted from taxable incoime for all individual alike ,I mean for Male,Women and Senior citized assessees.

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