Tax saving investments Section 80c

Tax saving investments - Optimum use of Section 80/c

Public Provident Fund (PPF)

Return - 8% pa,

Tenure - 15 years,

Minimum investment - Rs 500,

Maximum investment - Rs 70, 000.

Assured but not fixed returns since interest rates change as per government rules from time to time, amount invested can be deducted from taxable income.

Equity Linked Savings Schemes (ELSS)

Tenure - 3 years,

No upper limit of investment,

High earning potential,

Provides 10% to 15% returns with a good scheme, over a long term.

National Savings Certificate (NSC)

Return - 8% compounded half-yearly,

Tenure - 6 years,

Minimum investment - Rs 500,

No maximum investment limit,

Amount invested can be deducted from taxable income.

5-year fixed deposits with a bank or post office

Return - Currently between 5% and 9% depending on tenure.

Tenure should be up to a maximum of 5 years to avail tax benefits.

Amount invested can be deducted from taxable income.

Senior Citizen Saving Schemes

Investments can be made by opening an account in a post office.

Investments need to be in multiples of Rs 1, 000 and should not exceed Rs 15 lakh.

Tenure - 5 years and can extend to 3 years,

Returns - around 7%-9% p.a.

Tax benefits only if form 15G or 15H is submitted.

Unit Linked Insurance Plans (ULIPs)

Mutual funds with an insurance component ( optional ), returns depend on scheme, qualify for tax deductions irrespective of plan