Under Section 80C Best Tax Saving Investment

There are numerous clever strategies to Tax Saving Investment and get the most savings. Tax preparation, however, is often a let’s do it later activity for most people. A better strategy is to start investing in the first quarter of the fiscal year to give one time to make wise plans and to take advantage of the best returns from various tax-saving investments.

It is crucial to take safety, returns, and liquidity into account when picking the best Tax Saving Investment programs. Also, it’s critical to have a thorough awareness of the tax implications of the returns. The potential to accumulate wealth over the long term is limited if investment returns are taxed.

Section 80C of the Internet Income Tax Act is a crucial part to understand before going on to the list of finest Tax Saving Investment options. Section 80C of the Income Tax Act sets down the guidelines for the majority of tax-saving investment plans. According to this clause, the investor is entitled to a tax exemption on their investments up to a maximum of Rs. 1, 50,000. A few examples of these investments are bonds, ELSS (Equity Linked Savings Scheme), fixed deposits, life insurance, public provident fund, and life insurance. There aren’t many investment options that offer an additional tax deduction over and above this cap. Let’s look at the greatest investments for Tax Saving Investment under section 80C of the IT Act.

Best Tax Saving Investment Under Section 80C

Despite the market having a wide range of Tax Saving Investment products. Which strategy suits them the best is a common topic of confusion. We have identified some of the top Tax Saving Investment under Section 80C of the Income Tax Saving Investment Act, 1961 in order to help you select the investment strategy that is appropriate for you based on your risk tolerance and preferences.

InvestmentReturnsLock-in Period
ELSS FundNot fixed3  years
National Pension Scheme (NPS)9% to 12%Till Retirement
Unit Linked Insurance Plan (ULIP)Returns vary from plan to plan5 years
Public Provident Fund (PPF)7.1% currently15 years
Sukanya Samriddhi Yojana7.60%21 years
National Savings Certificate6.80%5 years
Senior Citizen Saving Scheme7.40%5 years
Bank FDs5.5% to 7.75%5 years
InsuranceReturns vary from plan to plan3  years


How many tax-free investment instruments can one have?

There is no restriction on how many tax-free investment vehicles one may use. There is a maximum deduction amount, nevertheless, beneath which one cannot claim the tax advantages. These restrictions are governed by several sections of the Income Tax Act.

How will I be able to pay less tax on higher income?

Making investments in tax-free investment vehicles can help you save on taxes. This will enable you to pay lower taxes on large income.

How much should I save for my taxes?

According to Section 80C of the IT Act, 1961, you are eligible to claim a tax deduction of up to Rs. 1 lakh 50 thousand for the premiums you have paid.

What is the maximum limit of investment under Section 80C?

Under Section 80C of the Income Tax Act of 1961, you are permitted to invest up to Rs. 1,50,000 of your total taxable income.

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