In today's time, every person wants to save as much as possible from his hard-earned money. If you choose the right tax saving scheme, then along with saving tax, you can also create a good fund for your future.
In this blog, we will tell you about the best tax saving plans , so that you can choose the right plan according to your needs.
1. Public Provident Fund (PPF) – The Safest Scheme
- Tax exemption: Up to ₹1.5 lakh under section 80C
- Interest Rate: Around 7.1% (fixed by the government)
- Lock-in period: 15 years
- Risk: Absolutely safe (Guaranteed by Government)
Why choose us?
- Safe and long term savings plan
- Investment, interest and maturity amount – all three are tax free
- Partial withdrawal can be done after 7 years
2. Equity Linked Savings Scheme (ELSS) – Highest Returning Scheme
- Tax exemption: Up to ₹1.5 lakh under section 80C
- Interest Rate: 12-15% (on average)
- Lock-in period: 3 years
- Risk: Depends on the stock market
Why choose us?
- Lowest lock-in period (only 3 years)
- Higher returns than other tax saving schemes
- Investing in the long term can give good returns
3. National Pension Scheme (NPS) – Best scheme for retirement planning
- Tax exemption:
- Up to ₹1.5 lakh under section 80C
- Additional ₹50,000 under section 80CCD(1B)
- Interest Rate: 8-10% (on average)
- Lock-in period: Till the age of 60 years
- Risk: Depends on stock market and bonds
Why choose us?
- Great returns for the long term
- Source of regular income after retirement
- Government-backed scheme
4. Employee Provident Fund (EPF) – Best for salaried people
- Tax exemption: Up to ₹1.5 lakh under section 80C
- Interest Rate: Around 8.15% per annum
- Lock-in period: Till the tenure of employment
- Risk: Absolutely safe
Why choose us?
- Investment by deducting salary every month
- Funds can be transferred when you change jobs
- There is no tax on interest
5. Tax Saving Fixed Deposit (FD) – The Easiest and Safest Way
- Tax exemption: Up to ₹1.5 lakh under section 80C
- Interest Rate: 6-7% per annum
- Lock-in period: 5 years
- Risk: Absolutely safe
Why choose us?
- One can easily invest in the bank
- Ideal for seniors as it is risk-free
- Interest rate is slightly higher as compared to other FDs
6. Sukanya Samriddhi Yojana (SSY) – Best for daughter’s future
- Tax exemption: Up to ₹1.5 lakh under section 80C
- Interest Rate: Around 8% per annum
- Lock-in period: 21 years (or partial withdrawal when daughter turns 18)
- Risk: Absolutely safe
Why choose us?
- Ideal for education and marriage of daughters
- Interest rate is higher than PPF
- Both investment and interest are tax free
7. Senior Citizen Savings Scheme (SCSS) – Most beneficial for the elderly
- Tax exemption: Up to ₹1.5 lakh under section 80C
- Interest Rate: Around 8.2% per annum
- Lock-in period: 5 years
- Risk: None (Government Guarantee)
Why choose us?
- Assured income after retirement
- Higher interest rate than other schemes
- Available at banks and post offices
8. Health Insurance – The best way to save tax on medical expenses
- Tax exemption:
- Up to ₹25,000 for self and family
- Up to ₹50,000 for parents
- Risk: none
Why choose us?
- Protection from huge hospital expenses
- Health cover along with saving tax
- Higher discounts for senior citizens
Which is the best tax saving scheme?
If you…
- Want a completely safe plan → PPF, EPF, Tax Saving FD, Sukanya Samriddhi Yojana
- Want good returns → ELSS, NPS, SCSS
- Want the lowest lock-in period → ELSS (3 years), Tax Saving FD (5 years)
- Retirement planning → NPS, SCSS
- Want to save for your daughter → Sukanya Samriddhi Yojana
- Want to save tax with health insurance → Health Insurance (80D)
conclusion
If you want to save tax as well as plan for the future, then choosing the right scheme is very important.
- If you want safe investment for the long term , then PPF, EPF, and Sukanya Samriddhi Yojana are the best options.
- If you want higher returns , then ELSS and NPS are better.
- If you are planning for retirement , then you can choose NPS and SCSS .
Choose the right option from these schemes for tax saving and make the right investments to secure and grow your money!
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