2 Replies to “which savings scheme is better?KVP or NSC offered in post offices?”

  1. A correct answer to your query will depend on your present tax bracket, your total income and your disposition towards safe investments. PPF offers tax free income earned from interests. In addition, PPF is also free of wealth tax and cannot be attached by any Court of Law (Extreme case!).

    Both NSC and PPF offer the benefits of Section 80C of the Incometax Act. Investments upto Rs. 1 lac every year in these instruments enables you to reduce your taxable income by that much amount.

    If your total income does not exceed Rs. 1,50,000 every year (from all sources put together), then investing in State Bank of India FD and getting 10.5% interest may be the best option.

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