InvestorQ : Is the post office time deposit tax friendly?
Tanya Mehta made post

Is the post office time deposit tax friendly?

Answer
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1 year ago


Yes, the post office time deposit is tax friendly.

This is because no tax is deducted at source (TDS) in post office small savings schemes, which includes post office time deposit, as well.

However, not all post office time deposits enjoy the Section 80C deduction of up to Rs 1,50,000. This is only applicable for the time deposit with tenure of five years.