Tax saving schemes are one of the most important ways to help save out on the amount of tax you pay. There are a range of deduction available to us under the Income Tax Act, 1961 that reduce the burden of paying tax on all our earnings.
Tax saving schemes can be fairly confusing however it’s important to have a view of the different options available for tax savings.
Here we list of 5 popular tax-saving schemes in India, which you could consider investing in, under Section 80C:
1. Public Provident Fund (PPF)
If you are a safe player in the investment world, the PPF gives the advantage of above average returns and also tax efficiency.
2. Equity Linked Savings Scheme (ELSS)
This is a combination of good returns, tax efficiency and also long term wealth creation.
3. National Pension Scheme (NPS)
The NPS gives you the option to choose and invest the type of asset class (equity, debt, balanced) to invest in it.
4. Unit-linked Insurance Plan (ULIP)
ULIPs is the mix of insurance and securities investments. After being controversial for their lack of transparency, ULIPS have seen considerable reductions in administration charges.
5. Insurance Coverage
One of the most popular tax saving schemes in India has been insurance policies. While in the past, the focus was on endowment policies, the focus today is more on term policies.
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