Tax Saving Investments
Tax Saving Investments are an integral part of one’s life as they offer tax deduction under section 80C or 80CCC. Taking into account, the importance of these investments, people frequently wish to invest. However, they are not keen enough to invest due to low returns and different risks associated with various investments.
Best Tax-Saving Investments Under Section 80C
Although there are various tax-saving investment plans available in the market. People often get confused which plan best suits them. In order to make you choose the best investment plan for you depending on your risk appetite and preferences, we’ve come up with some of the best tax-saving investments u/s 80C of the Income Tax Act, 1961.
Investments | Returns | Lock-In Period |
---|---|---|
ELSS Fund | 12%-14% | 3 years |
National Pension Scheme (NPS) | 10%-12% | Till Retirement |
Unit Linked Insurance Plan (ULIP) | Returns vary from plan to plan | 5 years |
Endowment Insurance Plan | Returns vary from plan to plan | Duration varies from Plan to Plan |
Public Provident Fund (PPF) | 7.10% | 15 years |
Sukanya Samriddhi Yojana | 7.60% | N/A |
National Savings Certificate | 6.8% | 5 years |
Senior Citizen Saving Scheme | 7.4% | 5 years |
Bank FD's | 5.50%-7% | 5 years |
Term Insurance | Returns vary from plan to plan | Till Maturity of Plan |
ELSS or Equity Linked Savings Schemes
ELSS Funds – Invest in Tax Saving Mutual Funds & Save Upto ₹46,800 in Taxes
Trusted By Over 40 lakh Indians
INVEST IN TAX SAVING FUNDS & SAVE TAX UP TO
₹46,800
Invest before 31st March to claim 80C benefit
National Pension System (NPS)
National Pension System (NPS) is a defined contribution based pension scheme wherein the subscriber contributes to his/her account regularly. Any Citizen of India with age between 18 to 65 years can join NPS. Under NPS, individual savings are pooled in to a pension fund which are invested by PFRDA regulated professional fund managers as per the approved investment guidelines in to the diversified portfolios comprising of Government Bonds, Bills, Corporate Debentures and Shares.
Features

Features
Choice of fund option

Tax Benefits & Pension Planning
Various Tax Benefits available u/s 80 CCD 2 upto 1,50,000/- + upto Rs 50,000/- u/s 80 CCD 1 (B) as well as plan for retirement income.

Ease of access
The NPS account can be managed online. Once NPS account is opened, online access credentials is provided by CRA (KARVY). Subscriber can login and view/manage his NPS account online.
Unit Linked Insurance Plans (ULIPs)

ULIP enables the best of both worlds by offering the twin benefits of life insurance and market-linked returns. Hence, you have the opportunity to invest your money to earn higher returns, while taking care of your protection needs.
- Flexibility to manage your money
- Transparency of your investments
- Security for your family’s future with comprehensive maturity and death benefits
- Long-term market-linked returns on your ULIP investment
Public Provident Fund – PPF
Public Provident Fund Scheme is a Central Government scheme, framed under the PPF Act of 1968. Thus we can say PPF is a government backed, long term Small Savings Scheme. The Scheme offers an investment avenue with decent returns coupled with income tax benefits.
PPF Product Features:
Sukanya Samriddhi Yojana (SSY)
Sukanya Samriddhi Yojana (SSY) is a savings scheme launched back in 2015 as part of the Government initiative Beti Bachao, Beti Padhao campaign. This scheme enables guardians to open a savings account for their girl child with an authorized commercial bank or India Post branch.
Double Tax Benefits:
National Saving Certificate (NSC)
National Saving Certificate (NSC), a part of the Indian Postal Service is a type of savings bond provided by the Indian Government used for small tax savings.
National Saving Certificate Benefits:
SCSS – Senior Citizen Savings Scheme
Senior Citizens Savings Schemes can be availed by any individual above the age of 60 years. They are effective savings options for the long term and offer attractive features and unmatched security.
Some of the main benefits of the scheme are:
Fixed Deposits: Tax Saving FD for Sec 80C
Senior Citizens Savings Schemes can be availed by any individual above the age of 60 years. They are effective savings options for the long term and offer attractive features and unmatched security.
Why to invest?
Insurance
Life Insurance
Reduce income tax on the amount of money you invest with a life insurance policy. Section 80C of the ITA permits tax deductions on premiums and payouts of life or term insurance plans. Premiums paid towards your life insurance will not be taxed if they are under a total of ₹1.5 lakhs. Section 10(10D) of the ITA allows any payouts received under a life insurance policy to be exempt from tax.