Best Tax Saving Investments in India

Navigating the world of tax-saving investments can be complex, but understanding your options is the first step towards financial efficiency. In India, Section 80C of the Income Tax Act offers a variety of instruments to help you reduce your taxable income by up to ₹1.5 lakh.

1. Public Provident Fund (PPF)

A government-backed scheme, PPF is a popular choice for its safety and attractive interest rates. It has a 15-year lock-in period and offers tax-free returns, making it a powerful long-term savings tool.

2. Equity Linked Savings Scheme (ELSS)

ELSS mutual funds offer the dual benefit of tax savings and wealth creation through equity exposure. With a lock-in period of just three years, they are one of the most flexible tax-saving options.

3. National Pension System (NPS)

NPS is a retirement-focused investment scheme that offers an additional tax deduction of up to ₹50,000 under Section 80CCD(1B), over and above the ₹1.5 lakh limit of Section 80C.