10 Tax Saving Instruments in India

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1. Equity Linked Savings Scheme (ELSS)

Before the meeting, the Union Finance Minister held a pre-budget consultation with various states and UTs.

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2. Public Provident Fund  (PPF)

15-year lock-in, government-backed, quarterly fixed interest rates, popular due to its security.

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3. Senior Citizen Savings Scheme  (SCSS)

For individuals over 60, up to INR 1.5 lakh tax benefit, INR 30 lakh max investment, fixed interest rates.

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4. Sukanya Samriddhi Account

Aims to improve the welfare of Indian girls, accounts for minors under ten, government-backed with quarterly interest rate adjustments.

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5. Tax Saver Fixed Deposit

5-year lock-in, up to INR 1.5 lakh tax deduction, interest taxed according to the tax slab of the investor.

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6. National Pension Scheme  (NPS)

Government-supported, Tier 1 for tax benefits, additional INR 50,000 deduction under Section 80CCD(1B), market-linked returns.

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7. Unit Linked Insurance Plan (ULIP)

Combines investment with life insurance, five-year lock-in, part of premium invested in market-linked securities.

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8. Life Insurance

Premiums deductible under Section 80C, financial protection with tax-exempt death benefits.

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National Savings Certificates  (NSC)

5-year lock-in, government-set interest rates, compounded annually, secure investment.

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Capital Guaranteed Plan

 Offers capital preservation and growth, low-risk, shields capital from market fluctuations, investment deductible under Section 80C.

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