The Income Tax department has introduced various deductions under Section 80C to encourage taxpayer savings and investment.
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.
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.
PPF is a long-term investment vehicle backed by the government; investments into a PPF account get tax deductions.
EPF is a retirement fund for salaried employees, contributed from their salary.
Deposits in NPS get tax deductions up to Rs 1.5 lakh under Section 80C.
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.
Investments in this scheme for girl child receive tax relief.
Compiled By Himani Verma
8 Things To Know About Tax Slabs in New Regime