Every year, millions of Indians rush to make last minute investments just to save tax. They pick whatever is available without thinking about whether it fits their goals. This leads to money locked in products that do not serve them well.
A smarter approach is to plan your tax saving investment options at the start of the financial year. Choose products that save tax and help you grow your wealth at the same time. With the right strategy, your tax savings work double duty.
Get expert advice tailored to your income slab and financial goals
Tax saving investments are financial products that qualify for deductions under specific sections of the Income Tax Act. When you invest in these products, you can reduce your taxable income. This means you pay less tax.
The most popular section is 80C, which allows deductions up to Rs 1.5 lakh per year. Other sections like 80D (health insurance) and 80CCD (NPS) offer additional deductions. Explore broader wealth building opportunities across our curated investment plans.
Calculate your exact tax savings instantly using our free online Tax Calculator.
Review the primary investment vehicles eligible for deductions up to ₹1.5 Lakhs under Section 80C of the Income Tax Act.
Equity Linked Savings Schemes are tax saving mutual funds. They invest in stocks and have a 3 year lock in period, the shortest among all 80C options. Over 5 to 10 years, they offer the potential for strong returns. However, returns are not guaranteed and depend on market performance.
PPF is a government backed savings scheme with a 15 year lock in period. It offers a fixed interest rate that is revised quarterly. Both contributions and maturity proceeds are tax free. PPF is one of the safest long term savings options.
Premiums paid for term insurance qualify under Section 80C. You get life cover for your family and a tax deduction. The payout to your nominee is also tax free under Section 10(10D).
Premiums for endowment, money back, and guaranteed return plans also qualify under 80C. These plans combine savings with insurance.
ULIP premiums qualify under Section 80C. ULIPs combine insurance with market linked investment. They have a 5 year lock in period. Maturity proceeds may be tax free under Section 10(10D).
A comprehensive overview of lock-in periods, risk parameters, and return expectations across Section 80C instruments.
Premiums paid for health insurance qualify for a separate deduction under Section 80D. You can claim up to Rs 25,000 for self and family. If you also pay premiums for parents, you get an additional Rs 25,000 (Rs 50,000 if parents are above 60).
This deduction is over and above the Rs 1.5 lakh limit of Section 80C. Explore dedicated family health insurance options to claim this benefit seamlessly.
NPS contributions qualify under Section 80CCD(1B) for an additional deduction of Rs 50,000. This is over and above the 80C limit.
Combined with 80C and 80D, you can save tax on up to Rs 2.5 lakh or more of your income. Pair your NPS strategy with structured retirement plans to build long-term independence.
Calculate how combining Section 80C, Section 80D, and Section 80CCD reduces your total tax liability across old and new tax regimes.
Do not choose based on tax savings alone. Consider your goal, risk tolerance, and how long you can lock your money.
If you want highest growth potential and can lock funds for 3 years: ELSS.
If you want zero risk and long term safety: PPF.
If you want insurance plus savings: ULIP or life insurance plans.
If you want extra deduction beyond 80C: NPS under 80CCD(1B).
If you want to reduce tax and protect health: health insurance under 80D.
The best strategy is to spread your Rs 1.5 lakh across 2 to 3 products that serve different goals.
Comprehensive tax planning and wealth advisory across India
Tax planning should not be a last minute rush. Our IRDAI licensed advisors help you plan your tax saving investments at the start of the year. We compare ELSS funds, insurance plans, PPF, NPS, and other options to build a strategy that saves tax and grows your wealth.
Answers regarding 80C eligibility, maximum savings, ELSS returns, lock-ins, and 80D deductions
Use our Tax Calculator to see how much you can save. Then talk to an advisor to build your tax saving plan. Call 90 90 92 15 15 or fill out the enquiry form.