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Business Standard
2 days ago
- Business
- Business Standard
Small savings rates unchanged for Q2FY26: Check what you'll earn
In a move that will come as a relief to conservative investors, the government has kept the interest rates of small savings schemes, such as the Public Provident Fund (PPF), National Savings Certificate (NSC), and Senior Citizen Savings Scheme (SCSS), unchanged for the second quarter of the financial year 2025-26 (FY26). This decision comes despite a cumulative 1 per cent repo rate cut by the Reserve Bank of India (RBI) over the past few months. The unchanged rates will apply for the quarter from July 1 to September 30, 2025, according to the latest circular issued by the Department of Economic Affairs, Ministry of Finance, on June 30. What are the current rates? These post office schemes, often preferred by risk-averse households, continue to offer attractive interest rates. Here are the applicable rates for Q2 of FY26: Savings Deposit – 4.0 per cent 1-Year Time Deposit – 6.9 per cent 2-Year Time Deposit – 7.0 per cent 3-Year Time Deposit – 7.1 per cent 5-Year Time Deposit – 7.5 per cent 5-Year Recurring Deposit – 6.7 per cent Senior Citizen Savings Scheme (SCSS) – 8.2 per cent Monthly Income Account Scheme – 7.4 per cent National Savings Certificate (NSC) – 7.7 per cent Public Provident Fund (PPF) – 7.1 per cent Kisan Vikas Patra – 7.5 per cent (maturity in 115 months) Sukanya Samriddhi Yojana (SSY) – 8.2 per cent How rates are decided Small savings scheme rates are reviewed quarterly. According to the recommendations of the Shyamala Gopinath Committee, rates should ideally be set 25-100 basis points above government bond yields of comparable maturities. However, the government has the discretion to deviate from this formula, and has done so on several occasions, especially when it sees merit in protecting household incomes or maintaining retail investor interest. Last revision The most recent revision in small savings interest rates happened in Q4FY24. Then, the 3-year time deposit rate was increased to 7.1 per cent and Sukanya Samriddhi Yojana to 8.2 per cent. Since April 2024, all other rates have remained stable.
Economic Times
2 days ago
- Business
- Economic Times
RBI Floating Rate Savings Bond interest for July - December 2025: What is the latest interest rate, when will you get it?
RBI Savings Bond Synopsis RBI Floating Rate Savings Bonds will continue offering 8.05% interest from July to December 2025. These bonds are linked to National Savings Certificate rates, offering 0.35% higher interest. Interest is paid semi-annually on January 1 and July 1, subject to tax and TDS if exceeding Rs 10,000 annually. The interest rate for RBI Floating Rate Savings Bonds for the period July to December 2025 will continue to earn the same as before. Read on to find out how much interest these bonds will earn during this period. ADVERTISEMENT The RBI Floating Rate Savings Bond (FRSBs), 2020 (Taxable) will offer 8.05% interest from July to December 2025, the rates are unchanged from January to June 2025 rates. The interest rate of the RBI Floating Rate Savings Bond is linked to the interest rate of the National Savings Certificate (NSC), a small savings scheme backed by the government. The interest rate of RBI Floating Rate Savings Bonds is always set as 0.35% higher than whatever rate NSC offers. Has Govt cut PPF, NSC interest rate after RBI repo rate cut of 1%? Check the latest interest rate of post office schemes announced today The government has announced no change in the interest rates for small savings schemes like Public Provident Fund (PPF), National Savings Scheme (NSC), Senior Citizen Savings Scheme (SCSS) and others on June 30, 2025. The interest rate on RBI floating-rate savings bonds is not fixed. It is reset twice every year i.e every six months. When the interest rate on NSC rises, the RBI floating rate savings bond will also pay a higher interest rate. Similarly, if the NSC interest rate falls, so will the interest rate on the RBI Floating Rate Savings Bond. The interest is payable semi-annually. The interest on these bonds is paid on January 1 and July 1 every year. ADVERTISEMENT Note that the interest received on such bonds is taxable in the hands of the investors. Also, you cannot claim any tax deduction for investing in these bonds. Further, TDS will be deducted on the interest received from these bonds, if the annual interest exceeds Rs 10,000. The minimum subscription amount for the RBI floating rate savings bond is Rs 1,000, with subsequent investments in multiples of Rs 1,000. There is no maximum limit. You cannot borrow against the RBI Floating Rate Savings Bond 2020 (Taxable) bonds. ADVERTISEMENT According to the PIB release on June 26, 2020, "RBI floating rate bond has a tenure and lock-in period of seven years." There is no premature withdrawal option, but senior citizens get the option to prematurely withdraw money with a penalty after a minimum lock-in period. For those aged 60 to 70, the lock-in period is six years. For those aged 70 to 80, the lock-in period is five years. Those aged above 80 can withdraw their investment after four years from the date of to the RBI notification date on June 26, 2025, "The Bonds shall be repayable on the expiration of 7 (Seven) years from the date of issue. Premature encashment in respect of the Bonds shall be allowed for individual investors in the age group of 60 years and above, subject to submission of document relating to date of birth of the investor in support of age to the satisfaction of the issuing bank, after minimum lock in period from the date of issue as indicated below: ADVERTISEMENT (a)Lock in period for investors in the age bracket of 60 to 70 years shall be 6 years from the date of issue. (b) Lock in period for investors in the age bracket of 70 to 80 years shall be 5 years from the date of issue. (c)Lock in period for investors in the age of 80 years and above shall be 4 years from the date of issue. ADVERTISEMENT In case of joint holders or more than two holders of Bonds, any one of the holders shall fulfill the above conditions of eligibility. After aforesaid minimum lock in period from the date of issue, an eligible investor can surrender the bonds at any time after the 12th 10th and 8th half year corresponding to the respective lock in period but redemption payment will be made on the following interest payment due date. Thus, the effective date of premature encashment for eligible investors will be 1st January and 1st July every year. However, 50% of interest due and payable for the last six months of the holding Period will be recovered in such cases." (Catch all the Personal Finance News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to ET Prime and read the ET ePaper online. NEXT STORY
Time of India
2 days ago
- Business
- Time of India
Don't forget to claim these five deductions for reducing your income tax liability for AY 2025-26 under old tax regime
Tax deductions for filing ITRs under old tax regime 1. Deduction for health insurance premiums under Section 80D 2. Deduction for Employees Provident Fund (EPF) under Section 80C 3. Deductions for investing in Public Provident Fund (PPF) under Section 80C 4. Deduction for investing in ELSS mutual funds under Section 80C 5a. Tax deduction under section 80TTA for savings bank account interest 5b. Tax deduction under Section 80TTB for senior citizens Can a husband claim tax deductions for investments made by wife or children if they have not themselves claimed it? It's been a while since the ITR-1 and 4 forms became available for online filing and as of June 30, 2025, 67 lakh ITRs have been filed and verified. However, ITR-2 and ITR-3 still aren't available for online submission. This could lead to a last-minute rush for filing Income Tax Returns ( ITR s) since the deadline for submitting ITR for FY 2024-25 (AY 2025-26) is September 15, 2025. So, make sure that this last-minute filing frenzy doesn't cause you to miss out on claiming certain deductions you are eligible for, which could end up costing you more in reading to discover some of the most common ways you can claim tax deductions while filing your ITR under the old tax a taxpayer hasn't claimed deductions for investments made in a specific financial year on their income tax return (ITR) for that year, they can't claim those deductions in any other out the information below to learn about some key tax deductions you can claim under the old tax regime:If you are under 60, you can get a tax deduction of up to Rs 25,000 for paying your health insurance premium under Section 80D. Just keep in mind that this deduction is only available if you pay for your own health insurance and for your dependents (like your wife and dependent children) during the financial year, and it depends on the threshold limit and other rules in can claim an additional deduction of up to Rs 25,00 for paying insurance (premium) of parents if they are under 60 years of age. The deduction could go up to Rs 50,000 if the parents are 60 years or older. Since FY 2015-16, there's also an additional deduction of Rs 5,000 for preventive health keep in mind, the Rs 5,000 deduction is included in the overall limit of Rs 25,000 or Rs 50,000 based on the parents' if you are not paying any amount as health insurance premium for a senior citizen then you have the option to claim up to Rs 50,000 in aggregate on account of medical expenditure incurred on senior citizen read: ITR filing due date extended but deadline to pay final tax without penalty is July 31 or Sept 15 now for FY 2024-25? Many salaried employees are covered under the Employees Provident Fund (EPF) scheme. Under this scheme, employees are required to put 12% of their salary into their EPF account. The employer matches this contribution. However, you can only claim a tax deduction for your contribution under Section 80C. If you want to add more to your EPF account, you can opt for the Voluntary Provident Fund (VPF). Just remember that the total contributions to both EPF and VPF can't exceed your basic salary in any financial note that the interest earned on EPF is not entirely tax-free anymore starting from FY tax exemption limits have been set for both government and private sector employees. Starting from 2021-22, if an employee's contributions to EPF and VPF accounts exceed Rs 2.5 lakh in a financial year, the interest earned on the excess amount will be taxable. Additionally, from FY 2020-21, if an employer's total contributions to EPF, NPS, and the superannuation fund surpass Rs 7.5 lakh in a financial year, then the income earned on the excess amount will also be taxable for read: Form 16 changes: Higher standard deduction for these taxpayers, and other changes in Form 16 for FY 2024-25 (AY 2025-26) Under Section 80C, you can claim a tax deduction of up to Rs 1.5 lakh in a financial year if you invest in specific instruments like the public provident fund (PPF), or the tax-saving fixed deposits (FDs), among PPF enjoys an 'exempt-exempt-exempt' (EEE) status, which means you can claim a tax deduction for investing in it. Plus, the interest earned on PPF is tax-free and so is the amount you receive at maturity. . The lock-in period for PPF is 15 years and can be extended too if you you invested in PPF in FY 2023-24, make sure to claim that investment as a tax deduction under Section 80C. You can claim all tax deductions under Section 80C for investment made in the financial year that corresponds to the assessment year, as long as you chose the old tax savings schemes (ELSS) are mutual funds that invest in equities and have a lock-in period of three years. You can invest in them and claim a tax deduction under Section you can only claim up to Rs 1.5 lakh in a financial year as a deduction under Section 80C. Out of all the eligible schemes under Section 80C, ELSS mutual funds have the shortest lock-in period. While you can claim a tax deduction for investing in ELSS mutual funds, any gains you make at the time of redemption are though you don't have to submit proof of your investments while claiming a tax deduction, it's a good idea to familiarize youself with the rules and have your evidence or proof handy before claiming any expenses. This way, you can steer clear of any disputes down the Accountant Abhishek Soni, co-founder of Tax2Win explains the concept of claiming tax deductions for ELSS mutual you invested Rs 50,000 in an ELSS mutual fund in FY 2022-23 and claimed Rs 20,000 as tax deduction that year, can you claim the rest Rs 30,000 for tax deduction in subsequent years?Soni says: 'No, you cannot claim the remaining Rs 30,000 as a tax deduction in FY 2024-25 (AY 2025-26). Deductions under Section 80C can be claimed only in the financial year in which the investment is actually made. So, if the ELSS investment of Rs 50,000 was made in FY 2022-23, you can claim a maximum deduction of up to Rs 50,000 (subject to the Rs 1.5 lakh 80C limit) only in FY 2022-23. Partial claiming across multiple years is not allowed, even if the full amount wasn't claimed earlier.'Chartered Accountant (Dr.) Suresh Surana says: "Under Section 80TTA of the Income Tax Act, 1961 Resident individuals below the age of 60 years and Hindu Undivided Families (HUFs) are eligible to claim a deduction under Section 80TTA of the IT Act. This provision allows a deduction of up to Rs. 10,000 on interest earned from savings accounts maintained with a bank, co-operative bank, or post office. It is important to note that this benefit is limited exclusively to savings account interest and does not extend to interest earned from fixed or recurring explains: 'The interest on the savings account is taxable as per the income tax slab rates that apply to the investor however, banks do not deduct TDS on savings bank interest. So if the interest is below the exemption limit, be sure to mention this exemption under Section 80TTA. After entering the interest income, complete other sections of the ITR form, including additional income details, deductions, and tax payments.'Senior citizens can claim Rs 50,000 as tax deduction for interest earned from FDs, savings account, post office deposits, individuals aged 60 years or above are entitled to claim a higher deduction under Section 80TTB. This section provides for a deduction of up to Rs. 50,000 on interest income earned from deposits held with banks, including interest from savings, fixed, and recurring deposit accounts. Notably, if a taxpayer claims a deduction under Section 80TTB, they are not permitted to claim benefits under Section 80TTA for the same financial year."Surana adds: "The deduction under Sections 80TTA and 80TTB is available only to resident taxpayers and as such, non-resident individuals (NRIs) are not eligible to claim these benefits. Further, any interest income exceeding the prescribed deduction limit of Rs. 10,000 under Section 80TTA or Rs. 50,000 under Section 80TTB is fully taxable as per the applicable income tax slab rates. Taxpayers should compute and report total interest income accurately, even if such income is not reflected in Form 16, Form 26AS, or the Annual Information Statement (AIS), in order to avoid discrepancies or potential scrutiny from the tax authorities."Surana says: "While filing the income tax return, the total interest earned from savings or other eligible deposits must be disclosed under the head "Income from Other Sources." The corresponding deduction should then be claimed under the appropriate section either Section 80TTA or Section 80TTB within the Chapter VI-A deductions schedule of the ITR form."Soni says that you can't directly claim income tax deductions for investments made by your wife or children. Tax deductions under Sections like 80C, 80D, etc., can only be claimed by the person who has actually incurred the expense or made the investment from their own explains: 'However, by structuring investments in joint names or contributing to joint accounts or policies, both spouses can maximize their tax benefits. For instance, joint home loans or joint life insurance policies allow each spouse to claim separate deductions, but individual investments made solely in your spouse's name will not qualify for deductions under your 80C limit.'
Time of India
2 days ago
- Business
- Time of India
December 2025: What is the latest interest rate, when will you get it?
When will you get the interest on RBI floating rate savings bond? Academy Empower your mind, elevate your skills RBI floating rate savings bond: What is the minimum and maximum investment allowed? What is the tenure of the RBI floating rate savings bond? The interest rate for RBI Floating Rate Savings Bonds for the period July to December 2025 will continue to earn the same as before. Read on to find out how much interest these bonds will earn during this RBI Floating Rate Savings Bond (FRSBs), 2020 (Taxable) will offer 8.05% interest from July to December 2025, the rates are unchanged from January to June 2025 rates. The interest rate of the RBI Floating Rate Savings Bond is linked to the interest rate of the National Savings Certificate (NSC), a small savings scheme backed by the government. The interest rate of RBI Floating Rate Savings Bonds is always set as 0.35% higher than whatever rate NSC government has announced no change in the interest rates for small savings schemes like Public Provident Fund (PPF), National Savings Scheme (NSC), Senior Citizen Savings Scheme (SCSS) and others on June 30, interest rate on RBI floating-rate savings bonds is not fixed. It is reset twice every year i.e every six months. When the interest rate on NSC rises, the RBI floating rate savings bond will also pay a higher interest rate. Similarly, if the NSC interest rate falls, so will the interest rate on the RBI Floating Rate Savings interest is payable semi-annually. The interest on these bonds is paid on January 1 and July 1 every that the interest received on such bonds is taxable in the hands of the investors. Also, you cannot claim any tax deduction for investing in these bonds. Further, TDS will be deducted on the interest received from these bonds, if the annual interest exceeds Rs 10, minimum subscription amount for the RBI floating rate savings bond is Rs 1,000, with subsequent investments in multiples of Rs 1,000. There is no maximum limit. You cannot borrow against the RBI Floating Rate Savings Bond 2020 (Taxable) to the PIB release on June 26, 2020, "RBI floating rate bond has a tenure and lock-in period of seven years." There is no premature withdrawal option, but senior citizens get the option to prematurely withdraw money with a penalty after a minimum lock-in period. For those aged 60 to 70, the lock-in period is six years. For those aged 70 to 80, the lock-in period is five years. Those aged above 80 can withdraw their investment after four years from the date of investment.
India Gazette
2 days ago
- Business
- India Gazette
Interest rates for small saving schemes kept unchanged in Jul-Sep 2025 quarter
New Delhi [India], June 30 (ANI): The central government has kept the interest rates unchanged on various small savings schemes for the July-September quarter, according to an official notification from the Ministry of Finance on Monday. The interest rates on small savings schemes are typically reviewed every quarter by the government. For the Public Provident Fund (PPF), one of the most popular small savings schemes, the interest rate will continue to be 7.1 per cent. This scheme is widely favoured due to its tax benefits and long-term savings potential. The Senior Citizen Savings Scheme (SCSS) will also maintain its interest rate at 8.2 per cent. This scheme is specifically designed to provide financial security to senior citizens, offering higher returns compared to other savings options. Deposits made under the Sukanya Samriddhi Yojana, which is aimed at encouraging savings for the education and marriage expenses of girl children, will continue to earn an interest rate of 8.2 per cent. This scheme is an integral part of the government's 'Beti Bachao Beti Padhao' initiative. The National Savings Certificate (NSC), which is a fixed-income investment plan, will keep its interest rate at 7.7 per cent. This scheme is considered a secure investment with moderate returns. The Post Office Monthly Income Scheme (PO-MIS), which provides regular monthly income to investors, will offer an interest rate of 7.4 per cent. The Kisan Vikas Patra (KVP), a government-backed savings scheme designed to double the investment over a specific period, will continue to provide an interest rate of 7.5 per cent. Additionally, the 5-Year Recurring Deposit (RD) scheme, which allows investors to deposit a fixed amount every month, will offer an interest rate of 6.7 per cent. These small savings schemes offer guaranteed returns at regular intervals, compounded monthly, quarterly or annually, as the case may be. The formula to arrive at the interest rates for a small savings scheme was given by the Shyamala Gopinath Committee. The committee had suggested yields on government bonds should be the benchmarks for the interest on various small savings instruments and should be reset every first of April. (ANI)
