{"id":32263,"date":"2024-02-12T12:44:52","date_gmt":"2024-02-12T07:14:52","guid":{"rendered":"https:\/\/blog.researchandranking.com\/?p=32263"},"modified":"2025-11-07T13:29:04","modified_gmt":"2025-11-07T07:59:04","slug":"top-5-tax-saving-investment-options-in-2024","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/top-5-tax-saving-investment-options-in-2024\/","title":{"rendered":"Top 5 Tax-Saving Investment Options in 2024"},"content":{"rendered":"
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We all have financial goals; a robust financial plan is the best way to achieve them. However, building a solid financial plan without proper tax planning is impossible. Taking measures to reduce your tax burden is a priority for all taxpayers as it is one of the best ways to retain your earnings. You can avail of several tax-saving options to reduce your overall tax liability.<\/p>\n\n\n\n

In this blog, we shall discuss some of the popular income tax-saving options available and highlight a few tax-saving investments<\/a> for different taxpayer groups.<\/p>\n\n\n\n

 Preferred Tax-Saving Investment Options at a Glance<\/h2>\n\n\n\n
Tax-Saving Options<\/mark><\/strong><\/td>Returns<\/mark><\/strong><\/td>Lock-in Period<\/mark><\/strong><\/td>Tax Benefits<\/mark><\/strong><\/td><\/tr>
Equity Linked Savings Scheme (ELSS)<\/strong><\/td>15%-20% annualized returns#<\/sup><\/td>3 years<\/td>Tax exemption under Section 80C<\/a> for amounts under \u20b91.5 lakhs <\/td><\/tr>
Unit Linked Insurance Plan (ULIP)<\/strong><\/td>10%-12% annualized returns##<\/sup><\/td>5 years<\/td>Tax benefit up to \u20b91.5 lakhs under Section 80C and under Section 10(10D) for death or maturity benefits earned. <\/td><\/tr>
Public Provident Fund (PPF)<\/strong><\/td>7.1% p.aa<\/td>15 years<\/td>Tax exemption under Section 80C. Maximum deduction allowed of up to \u20b91.5 lakhs<\/td><\/tr>
Employee Provident Fund (EPF)<\/strong><\/td>8.15% p.a.<\/td>5 years<\/td><\/tr>
National Savings Certificate (NSC)<\/strong><\/td>7.7% p.a.<\/td>5 years<\/td><\/tr>
Senior Citizen Savings Scheme (SCSS)<\/strong><\/td>8.2% p.a.<\/td>5 years<\/td><\/tr>
Sukanya Samriddhi Yojana<\/strong><\/td>7.6% p.a.<\/td>Maturity period: 21 years from account opening <\/td><\/tr>
Bank FDs<\/strong><\/td>5.5% – 7.75% p.a.<\/td>5 years<\/td><\/tr>
National Pension Scheme (NPS)<\/strong><\/td>9%-12% p.a.<\/td>5 years<\/td>Tax deduction of up to 10% of basic pay under Section 80CCD(1) and up to \u20b950,000 under Section 80CCD(1B), subject to a maximum of Rs.1.5 lakh under Section 80CCE.<\/td><\/tr><\/tbody><\/table>
3 years annualized returns for Direct Plans and funds with high CRISIL Ranking. Source: Moneycontrol<\/em>
5 years annualized return. Source: Moneycontrol<\/em><\/figcaption><\/figure>\n\n\n\n

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Tips for Effective Tax-Planning Through Tax-Saving Options <\/h2>\n\n\n\n

One of the most crucial pillars of financial planning – tax planning, must ideally be done at the beginning of the financial year. However, in India, most taxpayers postpone this critical decision-making process in the last quarter of a financial year, risking themselves to a last-minute scramble. <\/p>\n\n\n\n