Income Tax

Comparison of Various Income Tax Saving Schemes 2021

By Deepesh Goyal Income Tax Articles January 26, 2021 3 comments

Comparison of Various Saving Scheme

Article explains comparison of Various Saving Scheme for the purpose of Tax Planning & Investment Plan

i.e. Very Simple analysis / summarized view of below mentioned schemes is as under:-

1) Sukanya Samriddhi Scheme

2) Pubilc Provident Fund

3) Kisan Vikas Patra

4) Senior Citizen Saving Scheme

5) National Saving Certificate Scheme

6) Post Office Saving Account Scheme

7) National Savings (Monthly Income Account) Scheme

8) National Saving Time Deposit Scheme

9) National Saving Recurring Deposit Scheme

Sr. No.	Particulars	Sukanya Samriddhi Scheme	Public Provident Fund	Kisan Vikas Patra	Senior Citizen Saving Scheme	National Saving Certificate Scheme
1	Who Can Invest	Any Legal or natural guardian in the name of a girl child	Any Person	Any Person	Investment can be made by following individuals:- 1. Whose age is 60 years or more 2. Whose age is between 55 years to 59 year and who has retired on superan-nuation or 3. Whose age is 50 years or more and who has retired from defence services (excluding Civilian Defense Employees)	Any Person
2	Who Can be Benefi-ciary	Any Girl Child	Beneficiary can be Individual himself or a minor or a person of unsound mind on whose behalf individual is acting as a guardian
3	Rate of Interest*	7.6% per annum	7.1% per annum	6.9% (will mature in 124 months)	7.4% per annum	6.8% per annum
4	Calcul-ation of Interest	Calculated monthly but credited at the end of the year	Interest is calculated monthly on lowest balance between close of 5th day and last day of the month. The interest is credited to the account at end of each financial year		Computed on monthly basis and paid on quarterly basis	Interest is computed on yearly compunding basis (interest is deemed to be reinvested)
5	Maturity Period	21 Years from the date of Opening of Account or at the time of marriage, Which ever is earlier	15 Years		5 Years	5 Years
6	Maturity Amount			Double after 9 years and 5 months		Rs. 1462.54 payable on a certificate of Rs. 1000 denom-ination
7	Premature Withd-rawal	Allowed up to 50% of amount standing to the credit of the account for specified purpose	Allowed up to 50% of amount standing to the credit of the account
8	Premature Closure	1. In the event of death of beneficiary and 2. In the event of life threatening disease after completion of 5 years	Allowed after 5 years on folowing grounds:- 1. Higher education of account holder or dependent children or 2. In the event of life threatening disease 3. Change in residency status of the account holder	Allowed under the specified circums-tances	Withdrawal can be made any time	1. In the event of death of holder 2. On forfeiture by a pledgee 3. When ordered by a court of law
9	Is Joint Account Allowable	No	No		Yes
10	Number of Account Permissible	One account in the name of each beneficiary Girl Child	One Account	No Limit	An Individual can operate more than one account, however total deposit in all accounts shall not exceed the maximum limit	No Limit
11	Minimum Investment	Initial Investment is Rs. 250 and in multiples Rs. 100 thereafter	Initial Investment is Rs. 500 and in multiples Rs. 50 thereafter	Initial Investment is Rs. 1000 and in multiples Rs. 100 thereafter	Initial Investment is Rs. 1000 and in multiples Rs. 1000 thereafter	Initial Investment is Rs. 1000 and in multiples Rs. 100 thereafter
12	Maximum Investment	Rs. 150000 in a financial year	Rs. 150000 in a financial year	No Limit	Rs. 1500000 or retirement benefits Whichever is lower	No Limit
13	Maximum Number of Deposit during the year		Any No. of deposit can be made subject to maximum investment limit
14	Deduction Under Section 80C	Allowable	Allowable	Not Allowed	Allowable	Allowable
15	Taxability of Interest	Exempt	Exempt	Interest is taxable under the head Income from Other Sources. However deduction can be claimed under section 80TTB (up to Rs. 50000) if investor is a senior citizen	Interest is taxable under the head Income from Other Sources. However deduction can be claimed under section 80TTB (up to Rs. 50000) if investor is a senior citizen	Interest earned on deposit during the tenure of NSC are deemed to be reinvested in NSC. Such Interest can be claimed as deduction under section 80C. A senior citizen can claim deduction either under section 80C or under section 80TTB in respect of such interest
16	Can an NRI open account under this scheme				Any Individual, whether resident or non resident can invest in this scheme
17	Withdrawal from the account
18	Categories of Account
19	Pledging of account			Allowed

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Sr. No.	Particulars	Post Office Saving Account Scheme	National Savings (Monthly Income Account) Scheme	National Saving Time Deposit Scheme	National Saving Recurring Deposit Scheme
1	Who Can Invest	Any Person	Any Person	Any Person	Any Person
2	Who Can be Beneficiary
3	Rate of Interest*	4% per annum	6.6% per annum	1 Year Account : 5.5% per annum 2 Year Account : 5.5% per annum 3 Year Account : 5.5% per annum 5 Year Account : 6.7% per annum	5.8% per annum
4	Calculation of Interest	Calculated on monthly basis on lowest balance available between close of 10th day and end of the month. Interest is credited at the end of each year	Calculated and paid monthly	Computed on monthly basis and compound on quarterly basis. Interest is however payable anually at the end of each year
5	Maturity Period	No maturity period		1 year/ 2 years / 3 years / 5years
6	Maturity Amount				Rs. 7231.38 payable after making 60 monthly deposits of Rs. 100 each
7	Premature Withdrawal
8	Premature Closure		Alowed after 1 year from the date of opening of account	Alowed after 6 month from the date of opening of account	Allowed after 3 years from the date of opening of the account
9	Is Joint Account Allowable	Yes	Yes	Allowed	Yes
10	Number of Account Permissible	Only one account can be opend as a single account. However multiple joint each accounts can be opned provided account holder has equal share.	Multiple but total deposit shall not exceed the maximum limit	No Limit	No Limit
11	Minimum Investment	Initial Investment is Rs. 500 and in multiples Rs. 10 thereafter	Initial Investment is Rs. 1000 and in multiples Rs. 1000 thereafter	Initial Investment is Rs. 1000 and in multiples Rs. 100 thereafter	Initial Investment is Rs. 100 and in multiples Rs. 10 thereafter
12	Maximum Investment	No Limit	Rs. 450000 in case of single account and Rs. 900000 in case of joint account	No Limit but there will be just one deposit	No Limit
13	Maximum Number of Deposit during the year
14	Deduction Under Section 80C	Not Allowed	Not Allowed	Not Allowed	Not Allowed
15	Taxability of Interest	Exempt up to Rs. 3500 in case of single account and Rs. 7000 in case of joint account. Balance amount remaining after claiming deduction Section 80TTA/80TTB is taxable under the head Income from Other Sources	Taxable	Interest is taxable under the head Income from Other Sources. However deduction can be claimed under section 80TTB (up to Rs. 50000) if investor is a senior citizen	Interest is taxable under the head Income from Other Sources. However deduction can be claimed under section 80TTB (up to Rs. 50000) if investor is a senior citizen
16	Can an NRI open account under this scheme
17	Withdrawal from the account	Minimum withdrawal allowed is of 50 rupees
18	Categories of Account			(a) 1 Year Account (b) 2 Year Account © 3 Year Account (d) 5 Year Account
19	Pledging of account			Allowed