Here are some of the best tax-saving investment options under Section 80C and other sections of the Income Tax Act:
Under Section 80C (Limit: ₹1.5 lakh per year):
- Public Provident Fund (PPF) – Safe, long-term investment with tax-free returns.
- Employees’ Provident Fund (EPF) – Mandatory for salaried employees, with employer contribution.
- Equity-Linked Savings Scheme (ELSS) – Tax-saving mutual funds with a 3-year lock-in period and market-linked returns.
- National Pension System (NPS) – 80CCD(1) – Retirement-focused investment with additional benefits.
- Tax-Saving Fixed Deposit (FD) – 5-year lock-in, lower returns compared to ELSS and PPF.
- Sukanya Samriddhi Yojana (SSY) – For girl child’s education/marriage, tax-free interest.
- National Savings Certificate (NSC) – 5-year lock-in, fixed returns, taxable interest.
- Life Insurance Premiums – Covers term plans, endowment plans, and ULIPs.
Under Other Sections:
National Pension System (NPS) – Additional ₹50,000 under 80CCD(1B): Extra deduction over and above 80C for NPS investments.
Health Insurance (Section 80D): Up to ₹25,000 deduction for self & family.Additional ₹50,000 for senior citizen parents.
Home Loan Benefits (Section 80C & 24B): Principal repayment under 80C.Interest deduction up to ₹2 lakh under Section 24B.
Interest on Education Loan (Section 80E): No upper limit on tax benefits.
Rent Paid (Section 80GG): Deduction available for those not receiving HRA.
Interest on Savings Account (Section 80TTA/80TTB): ₹10,000 deduction under 80TTA (for regular taxpayers).₹50,000 under 80TTB (for senior citizens).
