Tax Saving

5 Tax Saving Investment Options in India

By LoanPandit

January 23, 2024

Public Provident Fund (PPF)


– Features: Govt. backed, 15-year lock-in, tax-free returns. – Benefits: Retirement planning, wealth creation. – Drawbacks: Low liquidity, long lock-in.

National Pension Scheme (NPS)


– Features: Market-linked, tax benefits up to Rs. 2 lakh. – Benefits: Retirement planning, flexible contributions. – Drawbacks: Lock-in till retirement, limited liquidity.

Equity Linked Saving Schemes (ELSS)


– Features: Equity investment, 3-year lock-in, tax benefits. – Benefits: High growth potential, tax savings. – Drawbacks: Market volatility, higher risk.

Unit Linked Insurance Plans (ULIPs)


– Features: Insurance + investment, tax benefits. – Benefits: Insurance cover, tax savings. – Drawbacks: High charges, lock-in, complex structure.

Senior Citizen Savings Scheme (SCSS)


– Features: Guaranteed returns, 5-year tenure, tax-free interest. – Benefits: Safe returns for seniors. – Drawbacks: Limited to seniors, less flexibility.