Post office depositors get income tax rebate

New Delhi, Dec 7 (UNI) The Government today announced the same income tax rebate to investors in post office's two savings scheme as has been available to those who have been making investments in National Savings Certificates (NSC) for many years.

Contributions made to National Savings Certificates VI&VII Issues enjoy deduction under section 80C of the Income-tax Act, 1961.

Now investment made in the Five Year Post Office Time Deposit Account and the Senior Citizens Savings Scheme will also get income tax rebate in the current financial year beginning April 1,2007, Finance Ministry said today.

In another sop to depositors in another post office scheme, the Ministry announced five per cent bonus on maturity on deposits made in The Post Office Monthly Income Account (POMIA) Scheme.

However, the benefits would be available only to new accout holders from tomorrow.

With this, the effective yield on contribution will be 8.9 per cent as against 8.3 per cent available now. The 8.9 per cent return, the Ministry added, compares very favourably with the return on bank deposits or Government securities of comparable maturity.

UNI