January 03, 2024
By Ananya Jain
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The full form of ELSS is Equity Linked Saving Scheme. These are tax saving mutual funds which invest at least 65% of their assets in stock markets. Tax exemption under Section 80C can be availed on investment up to Rs 1.5 lakh in ELSS fund. These funds come with the lowest lock-in among all tax saving investments i.e. 3 years.??
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The full form of NPS is National Pension Scheme which has been started by the Government of India to provide pension facilities after retirement to the employees working in the private sector. To avail tax deduction under Section 80C, you can invest up to Rs 1.5 lakh in NPS scheme. This scheme can be opened by any Indian citizen between the age of 18 to 60 years.??
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ULIP is a mixture of insurance-investment. A part of the amount invested in ULIP is used to provide insurance and the remaining amount is invested in the share market. By investing up to Rs 1.5 lakh in ULIP, you can save tax under Section 80C.??
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Tax-saving FDs are like regular fixed deposits, but they come with a lock-in period of 5 years and tax exemption under Section 80C on investments up to Rs 1.5 lakh.??
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PPF is one of the safest investment options under section 80C. Currently, PPF offers an interest rate of 7.1% per annum. The minimum deposit amount to open PPF is Rs 500. Whereas the biggest drawback of the PPF scheme is its long lock-in period of 15 years.??
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SCSS is a scheme especially for those who are above 60 years of age or above 55 years who have opted for retirement. The maturity period of this scheme is 5 years and it gives 8.6% returns every year. To save tax under Section 80C, up to Rs 1.5 lakh can be invested in the Senior Citizen Saving Scheme.??
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NSCs are eligible for tax exemption for the financial year in which they are purchased. To save tax under Section 80C, NSC can be purchased from Designated Post Offices and it comes with a lock-in period of 5 years.??
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One of the most popular schemes of the Government of India is Sukanya Samriddhi Yojana. You can open SSY account only at the time of birth of your daughter. You can open it anytime between the birth of the girl child till the age of 10 years. This scheme becomes mature when the girl turns 21 years of age. You can open an account in Sukanya Samriddhi Yojana with Rs 250. Currently the interest rate is 8% per annum.??
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