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Conservative investors and middle-class employees can enjoy tax exemptions under Section 80C of the Income Tax Act in India through multiple low-risk investment schemes.
Best low-risk investment options with tax savings for Indians. (Representative Image)
Want to keep a significant portion of your hard-earned salary free from the heavy burden of taxes? Start tax planning today by earmarking investment scheme options that help guard your taxes without causing excess risks to the sum assured. Fortunately, in India, Section 80C of the Income Tax Act offers investors many options to earn tax exemptions that can help them save up to Rs 1.5 lakh annually. Listed below are attractive tax-saving options with low risk on investments.
Public Provident Fund
The Indian government-backed Public Provident Fund scheme is an attractive option for those seeking low-risk and high-tax savings on their investments. It comes with a lock-in period of 15 years and can offer up to 7.1 per cent of returns annually. The PPF is a safe investment with its interest and maturity amount both being tax-free. Under the old tax regime, conservative investors enjoyed a deduction benefit of Rs 1.5 lakh.
National Pension System (NPS)
An excellent retirement plan, the National Pension System, comes with a lock-in period lasting till your professional life ends while offering returns ranging from 9 to 12 per cent. The NPS scheme also provides additional tax benefits of Rs 50,000 under section 80CCD(1B) over and above the Rs 1.5 lakh under 80C.
Sukanya Samriddhi Yojana (SSY)
As parents, ensuring your girl’s education and overall welfare is a critical part of financial planning. The SSY is one of the best schemes available to secure your daughter’s future with 7.6 per cent returns per annum, apart from multiple tax benefits. The SSY comes with a lock-in period of 21 years or until the daughter’s marriage.
National Savings Certificate (NSC)
Another safe government-sponsored scheme is the National Savings Certificate (NSC), where individuals can assure their sum for a maturity period of five years and expect returns up to 6.8 per cent annually. Investments in NSC are eligible for tax exemption under section 80C, which makes it a highly enticing option for small investors and middle-class employees.
Senior Citizen Savings Scheme (SCSS)
Perfect for senior citizens and conservative investors, the Senior Citizen Savings Scheme (SCSS) offers fixed returns with minimal risk on the sum invested. Individuals opting for SCSS can expect a 7.4 per cent annual return. The scheme has a lock-in period of 5 years, which can be extended by 3 years.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
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Delhi, India, India
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