Saving taxes while building wealth is a priority for Indians. With the ITR filing deadline for FY 2025-26 set for September 15, 2025, exploring tax-saving options under Section 80C and beyond is crucial. This post details the best tax-saving investments to reduce your taxable income effectively.
Understanding Tax Saving Under Section 80C
Section 80C allows a deduction up to ₹1.5 lakh annually. Utilize this limit with smart choices to lower your tax liability.
Top Tax Saving Investments for 2025
Public Provident Fund (PPF)
- Interest Rate: 7.1% (2025 estimate).
- Lock-in: 15 years.
- Benefit: Safe and tax-free returns.
National Pension System (NPS)
- Deduction: Up to ₹50,000 extra under Section 80CCD(1B).
- Returns: 8-10% historically.
- Ideal For: Long-term retirement planning.
Equity Linked Saving Schemes (ELSS)
- Lock-in: 3 years, shortest among tax-saving options.
- Returns: 12-15% (market-linked).
- Tip: Invest via SIPs for rupee cost averaging.
Unit Linked Insurance Plans (ULIPs)
- Benefit: Combines insurance and investment.
- Deduction: Up to ₹1.5 lakh.
- Caution: High charges—compare plans.
Additional Tax Saving Avenues
- Section 80D: Health insurance premiums up to ₹25,000 (₹50,000 for seniors).
- Section 80G: Donations to eligible charities.
- Home Loan Interest: Up to ₹2 lakh under Section 24.
How to Choose the Right Option
- Risk Appetite: ELSS for high risk, PPF for low risk.
- Time Horizon: Short-term (3 years) or long-term (15+ years).
- Consult Experts: Use platforms like ClearTax for guidance.
Conclusion
Maximize Best tax saving options in India with PPF, NPS, ELSS, and more. Plan early, file by September 15, 2025, and visit yanatec.in for updated tax tips to optimize your finances!