TAX Saving

14 Most Effective Tax Saving Schemes in India

By Divya Jain

July 20, 2023

Public Provident Fund (PPF)

A government backed long-term investment option offering tax-free interest.

01

Interest Rate - 7.1%/annum

National Pension Scheme (NPS)

A government backed retirement savings scheme with tax benefits for salaried and self-employed professionals.

02

Interest Rate - Variable

Employee Provident Fund (EPF)

A mandatory contribution for employees, providing tax advantages managed by EPFO.

03

Interest Rate - 8.1%/annum

Equity-Linked Savings Scheme (ELSS)

Tax-saving mutual funds with potential for high returns.

04

Interest Rate - Volatile

National Savings Certificate (NSC)

A government backed fixed income scheme with tax benefits.

05

Interest Rate - 6.8%/annum

Life Insurance Corporation Premium(LIC)

A government-owned insurance company with tax deductions up to Rs 1.5Lakh under section 80C.

06

Interest Rate - 4-6%/ annum

Sukanya Samriddhi Yojana (SSY)

A savings scheme for the girl child with tax exemptions.

07

Interest Rate - 7.6%/annum

Tax-saving Fixed Deposit

A fixed deposit scheme with tax benefits upto Rs 1.5 Lakhs under Section 80C

08

Interest Rate - 5-7%/annum (determined by individual banks)

Senior Citizen Savings Scheme (SCSS)

A government backed savings scheme for senior citizens with tax advantages.

09

Interest Rate - 7.4%/annum

Unit Linked Insurance Plan (ULIP)

An insurance-cum-investment plan with tax benefits under section 80C.

10

Interest Rate - Dependent on factors like Investment period

Home Loan Repayment

Deduction on home loan principal repayment under Section 80C upto Rs 1.5 Lakh

11

Interest Rate - Not Applicable

Tuition Fees for Children

Deduction on tuition fees paid for children's education under Section 80C up to Rs 1.5 Lakh.

12

Interest Rate - Not Applicable

Health Insurance Premium

Deduction on health insurance premiums under Section 80D up to Rs  25K.

13

Interest Rate - Not Applicable

Donations

Tax deduction on donations made to specified charitable institutions under Section 80G.

14

Interest Rate - Not Applicable