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 Scheme	National Saving Time Deposits (Earlier Post Office Time Depoists)
Rate of Interest	Check Here
Investment Limit	No Limit
Tax Benefits	Deduction u/s 80 C Available
Details	Click Here to Know More

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

Tax Saving Scheme	Kisan Vikas Patras (KVPs), 2014 (w.e.f. 23-9-2014)
Rate of Interest	Check Here
Investment Limit	No Limit
Tax Benefits	Deduction u/s 80 C Available
Details	Click Here to Know More

Bank Term Deposit Scheme 2006

Tax Saving Scheme	5 Years Time Deposit
Rate of Interest	Interest 7.8% p.a Depends on Bank
Investment Limit	No Limit
Tax Benefits	Deduction u/s 80 C Available
Details	Click Here to Know More

National Saving Certificate VIII Issue

Tax Saving Scheme	5 Year National Saving Certificates VIII Issue
Rate of Interest	Compound (Half-Yearly) Interest @8% p.a.
Investment Limit	No Limit
Tax Benefits	Investment & accrued interest for first 4 years qualify for deduction u/s 80C. Interest chargeable to tax on accrual basis (No TDS)
Details	Click Here to Know More

Public Provident Funds

Tax Saving Scheme	15 Years Public Provident Fund
Rate of Interest	8% p.a. every years but payable at the time of maturity
Investment Limit	minimum Rs.500 and maximum Rs.1,50,000
Tax Benefits	Interest totally exempt u/s 10(11) investment qualify during the year allowed for deduction u/s 80C
Details	Click Here to Know More

Post Office Saving Bank Account 

Tax Saving Scheme	Post Office Saving Bank Account
Rate of Interest	Interest @4% p.a. credited annually
Investment Limit	Minimum: 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 Benefits	Deduction up to Rs.10,000 is available under section 80TTA from the A.Y. 2013-14
Details	Click Here to Know More

7.75% Saving Taxable Bonds

Tax Saving Scheme	7.75% Saving Taxable Bonds
Rate of Interest	7.75% payable half yearly or compounded with half yearly rests
Investment Limit	No maximum limit,
Tax Benefits	Interest chargeable to tax (tax to be deducted at source)

Senior Citizen Saving Scheme, 2004 (Post Office)

Tax Saving Scheme	5 Year Senior Citizen Saving Scheme 2004
Rate of Interest	8.5% per annum payable quarterly
Investment Limit	maximum deposit Rs. 15 lakh
Tax Benefits	Investments qualifies for deduction u/s 80C
Details	Click to Know More

Sukanya Samriddhi Account

Tax Saving Scheme	Sukanya Samriddhi Account
Rate of Interest	8.5% p.a. Compounded Yearly
Investment Limit	Minimum Rs. 1000, Maximum Rs. 1,50,000
Tax Benefits	Interest totally exempt from tax u/s 10(11A). Investment qualifies for deduction u/s 80C
Detail	Click 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.