Is Post Office Fd Tax Free

Is Post Office Fd Tax Free. Here are five post office investments that help reduce tax liability as they come with tax benefits under section 80c of the income tax act, 1961. On the other hand, after two years, the post office will charge the penalty of 1% of the deposit amount.

The maximum period here is 5 years, and in one or more post offices, any number of such deposits can be made. For tenures ranging from 1 year to 5 years.