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10 Best Tax Saving Investments

There is several tax saving schemes that would help citizens in saving taxes. Some of the best ways by which maximum tax savings can be done are discussed as below:

  1. Public Provident Fund (PPF) is the topmost option for tax saving. It gives a complete set of options of tax saving along with safety and flexibility. Anybody can invest here and every bank offers this type of facility usually.
  2. Employee Provident Fund (EPF) is a type of scheme for an employee. Every employee of an organized sector must know about this tax saving investment. It is compulsory for all the employers to give 12% of the salary of their employees to be deducted towards employee provident fund. Employers are also supposed to give the same amount. This kind of investment is applicable for tax deduction. It can also be transferred to one job from another very easily.
  3. The equity linked saving scheme has least lock in period. For the period of 3 years, the money will be locked. This type of tax saving investment gives good returns in the longer period of time. The investment can even be rotated after 3 years. In case if the investor needs money before the period of 3 years, then dividend option must be chosen. It provides tax-free dividend.
  4. The national pension system is not very popular amongst the various tax saving schemes but it provides a happy life after retirement along with tax saving.
  5. The tax saving fixed deposits is like fixed deposits with a same rate of interest. The amount of money will get locked for a period of 5 years. The money can’t be withdrawn before its maturity. The rate of interest is also taxable.
  6. Term insurance doesn’t provide maturity amount. It gives a cover for life in case of any eventuality.
  7. National Saving Certificates are very similar to the tax saving fixed deposits. But they give lesser return as compared to bank fixed deposits. But it is safer than fixed deposits as the money stays with Indian government.
  8. Senior citizens saving scheme is the best option of tax saving scheme for the senior citizens. Even if any senior citizen does not need to save tax can also make investment under this. It gives regular income due to reason of timely interest deposit in their accounts.
  9. Unit linked insurance gives investment as well as insurance cover. It invests some of the amount in shares.
  10. Health insurance is tax deductible for the amount of premium paid is tax-deductible.

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