If you want to do tax-saving, then you have to do this work before 31 March. Only then you will be able to deduct up to Rs 1.5 lakh under Section 80C of the Income Tax Act for FY 2024-25. However, these deductions are available only in the old regimen of income tax. If you are using Old Rizim, then you can invest in the following investment options.
Public Provident Fund (PPF)
This is the most attractive tax-savings investment option under section 80C. The interest rate of PPF is currently 7.1 percent, which is higher than the interest rate of other schemes. The government reviews the interest rate every three months. You can claim deduction by investing from Rs 500 to Rs 1.5 lakh in PPF.
Sukanya Samriddhi Yojana (SSY)
This scheme is for parents whose daughters are. Parents can open Sukanya Samriddhi Akou for their two daughters. Its interest rate is 8.2 percent, which is more than PPF. This account will have to invest a minimum of Rs 250. The interest found in this scheme is tax-free. Parents can open Sukanya Samriddhi account for two daughters under 10 years of age.
National Savings Certificate (NSC)
A minimum investment of Rs 1,000 is required in the National Savings Certificate. Its interest rate is 7.7 percent. The NSC period is 5 years. After that this account gets matured. Those who do not want to take more risk, they can buy this certificate and claim deduction.
Senior Citizens Savings Scheme
People over 60 years of age can invest in Senior Citizens Savings Scheme. Its lock-in period is 5 years. In this, up to Rs 1,000 can be invested up to Rs 30 lakh. However, the deduction section 80C can be claimed only up to a limit of Rs 1.5 lakh. Its interest is 8.2 percent.
5 year tax-savings bank deposits
You can claim deduction by depositing 5 years in the bank. It is like a fixed deposit of banks. It contains only 5 years of lock-in period. This means that you cannot withdraw your money before 5 years.
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Mutual Fund’s Tax Savings Scheme
If you can take a little risk, then you can invest in the tax-savings scheme of mutual funds. The lock-in period in it is just 3 years. Its return is attractive against the second investment option under section 80C.