The best tax-saving investments

We happily spend sufficient time comparing alternatives before buying a smartphone. However, we rarely follow the same practice when it comes to selecting an investment product. The stress to meet the tax-saving deadline, combined with the cumbersome task of going through the features of various investment products, acts as a big deterrent. But don't worry! You don't need to break sweat to figure out your tax-saving alternatives. We have listed the main investment options that offer tax benefits. Besides, to facilitate comparison, we have also tabulated their essential features. Landscape of tax-saving investments under Sec 80C Product Lock-in period Annual returns Taxability of returns Minimum investment (Rs) Equity-Linked Savings Scheme 3-years 7-yr: 8.7%* 10-yr: 8.1%* 15-yr: 11.0%* Capital gains in excess of Rs 1 lakh are taxed at 10% 5,000 in lumpsum OR 500 per month National Pension Scheme (Tier I) Till 60 years of age; partial withdrawal allowed after 3 years Tier I Equity Plans 7-yr: 6.3%* 10-yr: 6.7%* Click here for other plans Tax-free withdrawal of up to 60% of the corpus 1,000 per annum Public Provident Fund 15 years; early withdrawal is allowed at a penalty after 5 years 7.1%^ Tax-free 500 per annum 5-year fixed deposit with bank 5-years 5.70%^^ Taxed as per the slab 1,000 5-year fixed deposit with post office 5-years 6.7%^ Taxed as per the slab 1,000 National Savings Certificate 5-years 6.8%^ Taxed as per the slab 1,000 Sukanya Samriddhi Yojana (For girl child up to the age of 10 years) 21 years; partial withdrawal allowed after the girl child turns 18 7.6%^ Tax-free 250 per annum Senior Citizens Savings Scheme (For senior citizens only) 5 years; early closure is allowed a

This article was originally published on May 22, 2020.