Income tax is something all of us would like to reduce it to the maximum. And what better than tax saving investments under Section 80C to reduce our taxes to some extent. Choose one of the following tax saving investments before 31st March.

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 PPF (Public Provident Fund)

It is one of the traditional yet highly preferred retirement planning investments. It is also a great long-term tax saving investment. The maximum amount that is allowed as an investment in the scheme is Rs 1.5 lakh. Interest income on PPF and the amount received on maturity are both tax-free.

ELSS (Equity Linked Saving Scheme)

ELSS is a mutual fund that comes within the ambit of tax saving investments. With a lock-in period of 3 years, this investment option offers an exemption of maximum Rs 1.5 lakh in a financial year. The interest rate depends on the performance of this scheme in a given year and the maturity amount from the investment is tax-free.

FD (Fixed Deposits)

Fixed deposit is another popular tax saving Investment. The interest rate varies from one bank or post office to another. The maximum exemption allowed is Rs 1.5 lakh for a minimum duration of 5 years. The interest earned and the maturity amount is taxable.

NSC (National Saving Certificate)

NSC’s are tax saving investments issued by the Indian Post Office. It has a 5-year lock in period. They offer guaranteed and tax-free returns till maturity, although the interests earned is taxable.

EPF (Employee Provident Fund)

This scheme helps save a maximum of Rs 1.5 lakh. In this fund, up to 12 % of a person’s basic salary gets deducted and the other 12 % is contributed by the employer.The amount at maturity is tax-free.

Life Insurance

Life insurance is the most popular tax saving investment under Section 80C of the Income Tax Act. With a maximum deduction of Rs, 1.5 lakh is allowed in a given financial year. The amount received at maturity or in the case of death is tax-free. Apart from the tax saving benefits life insurance helps one plan for the unforeseen events in his or her life.

ULIP (Unit Linked Insurance Plan)

ULIP is a unique combination of investment and insurance that results in a tax saving of Rs 1.5 lakh per year. The premium paid by you is split between insurance and investment. The corpus received at maturity is exempt from tax.

NPS (National Pension System)

The National Pension System is an additional tax saving investment. It is a long-term product with strict penalties on withdrawal. It is primary to encourage people to save for their retirement. Your contribution in the scheme is deducted from income tax up to a maximum of Rs.50,000. This deduction is over and above the limit of Rs 1.5 lakh of Section 80C.
However, if your employer contributes to your NPS account, it would be tax-free without any limit. And this contribution is also exempt from income tax over and above the 80C limit.

Sukanya Samriddhi Yojana

A Sukanya Samriddhi Yojana account can only be opened on a girl child’s name by her parents or legal guardians.The account can be opened anytime from the birth of the girl child till she attains the age of 10 years and it is valid up to 21 years of age. The maximum deduction of up to Rs 1,50,000 can be claimed every year under Section 80C. The maturity proceeds from the scheme are tax-free.