Lifestyle

Boost your savings: 7 investment options for saving your tax in India

Here are the top seven investment options.

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Public Provident Fund (PPF): 80C

PPF is a long-term savings scheme with a 15-year tenure. It offers tax deductions on contributions, and the interest earned and the maturity amount are tax-free.

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Equity-Linked Savings Scheme (ELSS): 80C

ELSS funds are mutual funds that invest primarily in equities. They have a lock-in period of three years and offer the potential for high returns. 

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National Savings Certificate (NSC): 80C

NSC is a fixed-income investment scheme with a 5-year tenure. Interest is compounded annually but is taxable. However, it can be reinvested and claimed under Section 80C.

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Employee Provident Fund (EPF): 80C

Contributions made by an employee to the EPF are eligible for tax deductions. The interest earned and the maturity amount are also tax-free, provided certain conditions are met.

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National Pension System (NPS): 80C, 80CCD(1B)

NPS is a retirement investment. NPS contributions are tax-deductible under Section 80C and Rs 50,000 under 80CCD(1B). 

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Tax-saving Fixed Deposits: 80C

These are bank fixed deposits with a lock-in period of five years. The investment amount is eligible for tax deductions, but the interest earned is taxable.

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Sukanya Samriddhi Yojana (SSY): 80C

SSY is a savings scheme for the girl child with a tenure of 21 years or until the girl marries after turning 18. Contributions, interest earned & maturity amounts are all tax-free.

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