Benefits of Tax Saving Plan
Investment in a Public Provident Fund, commonly known as PPF, is the best option to save tax u/c 80C. It is most suitable for the ones who want to save funds for their retirement
5 Year Bank Fixed Deposits is amongst of the best tax saving schemes under section 80C of the Income Tax Act, 1961. It is similar to the fixed deposits, having a 5years lock-in period. Higher interest rate compared to the regular FDs is provided. The interest earned at the end of 5years is fully taxable.
National Savings Certificate is a safe investment option. It is issued by the Post Offices. The Government of India looks after the interest and the principal amount.
There are other schemes like Unit Linked Investment Plan, Equity Linked Saving Schemes, Premium of Life Insurance, National Pension Scheme and Senior Citizens Savings Scheme (SCSS) which are the schemes where you can get benefits for the Tax Saving Plan.