When you are doing a job, obviously (in the old tax regime), you are also trying to save tax. For this, you can invest money in tax saving investment options. There are many such options in the market, which save tax under Section 80C of Income Tax. Let’s take a look at these options.
Taxes can be saved from investment in these options
ELSS
Equity Linked Saving Scheme (ELSS) is equity mutual funds that invest a large part of their accumulated funds in equity instruments. ELSS Mutual Fund is the only financial scheme that can give you tax exemption and also gives you a chance to earn money.
ULIP
ULIP is a mixture of insurance and investment safety in a single investment scheme. ULIP does not provide a fixed interest rate.
NPS
The National Pension Scheme (NPS) is a program run by the Government of India to provide retirement benefits to customers. On average, NPS provides 9–12% interest rate per year on the contribution made for the current financial year.
PPF
PPF is a government -sponsored investment scheme that allows long -term savings. The contribution made to the PPF is tax-cutter, and the lock-in period is 15 years.
SSY
Sukanya Samriddhi Yojana is a government savings scheme that aims to promote the development of girls by creating a fund for future finance and development. The interest rate given for Sukanya Samriddhi Yojana for the current financial year is 7.6%.
NSC
The National Savings Certificate is an investment certificate issued by the post office. The NSC scheme provides guaranteed returns on investment and also provides savings in income tax. The interest rate given under NSC for the current financial year is 6.8% per year
Tax FD
These are preferred in search of sure benefits by investors avoiding risk. Fixed income investment (FD) has a definite benefit as they give the same interest rate during their entire period.
EPF
It is a government sponsored savings scheme for the employees of the organized sector.
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