There are approximately two and a half months remaining until the end of the financial year 2024-25.
This leaves taxpayers with limited time to make investments for tax savings.
Many individuals are searching for the best investment options that not only help save tax but also provide good returns while ensuring financial security for the future.
Experts also emphasize the importance of completing all tax-related tasks in advance.
Keeping this in mind, we are sharing details about a highly beneficial scheme that can help reduce your tax burden and boost your savings.
1. Equity Linked Savings Scheme (ELSS)
ELSS funds are a popular tax-saving investment option that allows deductions of up to ₹1.5 lakh under Section 80C of the Income Tax Act.
With a minimum investment starting at ₹500 and a lock-in period of three years, ELSS combines tax benefits with growth opportunities.
2. National Pension Scheme (NPS)
NPS ensures a secure retirement while offering significant tax savings. Taxpayers can claim deductions of up to ₹50,000 under Section 80CCD (1B) in addition to ₹1.5 lakh under Section 80C.
3. Public Provident Fund (PPF)
PPF is an ideal choice for tax savings and risk-free returns. Both the interest earned and the maturity amount are tax-free, and contributions qualify for deductions under Section 80C, making it a long-term favorite for taxpayers.
4. Unit Linked Insurance Plan (ULIP)
ULIPs provide dual benefits of life insurance and investment returns, along with tax advantages.
With a five-year lock-in period, ULIP investments are tax-free, and the premiums paid are eligible for deductions under Section 80C.
5. Tax Saver Fixed Deposit (FD)
Tax-saving fixed deposits come with a five-year lock-in period and provide tax benefits of up to ₹1.5 lakh under Section 80C.
While premature withdrawals are not allowed, this low-risk option is suitable for conservative investors.
6. Senior Citizen Savings Scheme (SCSS)
For senior citizens, SCSS offers an attractive annual interest rate of 8.2% along with a tax deduction of up to ₹30 lakh, making it a reliable option for stable returns.
7. Sukanya Samriddhi Yojana (SSY)
The Sukanya Samriddhi Yojana provides tax deductions of up to ₹1.5 lakh under Section 80C, along with tax-free returns.
This scheme is specifically designed for parents of girls under the age of 10 to secure their future.
