1)The Government on Friday announced that the benefit of Section 80C of the Income Tax Act, 1961 will be extended to investments under Five Year Post Office Time Deposit Account and Senior Citizens Savings Scheme. The benefit of the deduction will be available in respect of investments made under these schemes with effect from April 1.
2)Also, 5% bonus will be payable on the deposits made under Post Office Monthly Income Account Scheme upon maturity. This benefit will be available on investments made in respect of new accounts opened under the Post Office Scheme on or after December 8.Together with bonus, the effective yield will be 8.9% as against 8.3% presently available under the Post Office Scheme.(POMIS).
This is definitely a good news for all of the post office investors.