New Delhi, Nov. 29 -- Taxpayers who have opted for the new tax regime are not entitled to claim tax deduction (section 80 C) for investing in small savings schemes which include but not limited to Senior Citizens Savings Scheme, National Savings Certificate (NSC), Public Provident Fund (PPF) and Kisan Vikas Patra (KVP).

Typically, investors opt for these schemes to claim income tax deduction under section 80C of I-T Act. Without an entitlement for this deduction, investors wonder whether to opt for these schemes or other schemes which do not have any lock-in period such as an FD (fixed deposit).

Let us understand how these schemes are different from regular savings schemes.

I. Interest rate: Most small savings schemes offer higher inte...