You can save tax by investing in instruments that qualify for tax deductions
04-Apr-2018 •Research Desk
Here are seven tax saving investments available to an individual:
| Investment | Interest or Return | Investment Amount (Rs) | Eligible Deduction | Feature | Assured Income |
| Public Provident Fund (PPF) | 7.60% | Min: 500 Max: 1.5 lakh | Under 80C, up to Rs 1.5 lakh | Principal and interest are tax free | Yes |
| National Savings Certificate (NSC) | 5-year: 7.60% | Min: 100 Max: No Limit | Under 80C, up to Rs 1.5 lakh | Interest is taxable | Yes |
| Equity Linked Savings Scloeme (ELSS) | No fixed returns | Min: 500 Max: No Limit | Under 80C, up to Rs 1.5 lakh | Returns in excess of Rs 1 lakh are taxable at 10% | No |
| Life insurance premium or ULIPs | No assured returns | Depends on the plan | Under 80C, up to Rs 1.5 lakh | Maturity proceeds are tax-free | No |
| National Pension System (NPS) | No assured returns | Min: 1000 Max: No Limit | Under 80C, up to Rs 1.5 lakh; Under 80CCD(1B), Rs 50,000 | 40% of the corpus on maturity is tax-free | No |
| EPF | 8.55% | Upto 12% on basic salary by employee and employer | Under 80C, up to Rs 1.5 lakh | Tax free on maturity. | Yes |
