10 Best Tax Saving Investment Options For Indian Working Professionals

Tax saving investments are an essential component of financial planning for working professionals in India. By investing in tax-saving options, individuals can reduce their taxable income and save on taxes. Ajay Kuriakose Jacobs, Managing Director of M-J Global, the most popular immigration consultancy in the Middle East, has compiled a list of the 10 best tax-saving investment options for Indian working professionals to help them plan their finances effectively.

M-J Global’s extensive experience in financial planning and investment strategies makes them well-versed in this topic. They have identified the following 10 tax-saving investment options as the best for Indian working professionals:

1. Public Provident Fund (PPF): A popular and safe investment option with a tax exemption of up to Rs. 1.5 lakh under Section 80C of the Income Tax Act. The interest earned on PPF is also tax-free.
2. Equity-Linked Saving Scheme (ELSS): A tax-saving mutual fund with a tax exemption of up to Rs. 1.5 lakh under Section 80C of the Income Tax Act. ELSS has the potential to provide higher returns compared to traditional tax-saving options.
3. National Pension System (NPS): A government-backed pension scheme with a tax exemption of up to Rs. 1.5 lakh under Section 80C of the Income Tax Act. NPS also offers an additional tax exemption of up to Rs. 50,000 under Section 80CCD(1B).
4. Tax-Saving Fixed Deposits (FDs): Fixed deposits with a lock-in period of 5 years that offer a tax exemption of up to Rs. 1.5 lakh under Section 80C of the Income Tax Act. The interest earned on tax-saving FDs is taxable.
5. Unit-Linked Insurance Plans (ULIPs): A combination of insurance and investment with a tax exemption of up to Rs. 1.5 lakh under Section 80C of the Income Tax Act. ULIPs offer market-linked returns.
6. Senior Citizen Savings Scheme (SCSS): A safe investment option for senior citizens with a tax exemption of up to Rs. 1.5 lakh under Section 80C of the Income Tax Act. SCSS offers a higher interest rate compared to traditional savings schemes.
7. National Savings Certificate (NSC): A government-backed savings scheme with a tax exemption of up to Rs. 1.5 lakh under Section 80C of the Income Tax Act. NSC has a maturity period of 5 years.
8. Sukanya Samriddhi Yojana (SSY): A savings scheme for the education and marriage of girl children with a tax exemption of up to Rs. 1.5 lakh under Section 80C of the Income Tax Act. SSY offers a higher interest rate compared to traditional savings schemes.
9. Employee Provident Fund (EPF): A government-backed retirement savings scheme with a tax exemption of up to Rs. 1.5 lakh under Section 80C of the Income Tax Act. The interest earned on EPF is also tax-free.
10. Life Insurance Premiums: The premium paid towards life insurance policies is eligible for a tax exemption of up to Rs. 1.5 lakh under Section 80C of the Income Tax Act. Life insurance policies also provide financial security for the family in case of the policyholder’s untimely demise.

By investing in these tax-saving options, Indian working professionals can not only save on taxes but also achieve their financial goals. It is important to choose tax-saving options that align with one’s financial goals and risk appetite. By seeking expert advice from professionals such as M-J Global, individuals can make informed investment decisions and achieve financial stability.