8 Best Tax-Saving Investment Options

Outlook Money

Section 80C

The Income Tax department has introduced various deductions under Section 80C to encourage taxpayer savings and investment.

Income Tax Department

Equity-Linked Savings Scheme

ELSS is a mutual fund scheme that allows you to invest in the stock market and claim deductions under Section 80C; it has a 3-year lock-in.

Savings Account

Five-Year Tax-Saving FDs

Tax-saving FDs are like regular fixed deposits, but come with a lock-in period of five years and a tax-break on investments of up to Rs 1.5 lakh.

Fixed Deposit with 5 Year Lock-in-peroiod

Public Provident Fund

PPF is a long-term investment vehicle backed by the government; investments into a PPF account get tax deductions.

Public Provident Fund

Employees' Provident Fund

EPF is a retirement fund for salaried employees, contributed from their salary.

Employee Provident Fund

National Pension System

Deposits in NPS get tax deductions up to Rs 1.5 lakh under Section 80C.

National Pension System of India

Unit Linked Insurance Plan

It combines insurance and investment, offering tax breaks for deposits up to Rs 1.5 lakh, but taxable if premium exceeds Rs 2.5 lakh annually.

Linked Insurance

Sukanya Samriddhi Yojana

Investments in this scheme for girl child receive tax relief.

Compiled By Himani Verma

National Scheme to support girl child

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