Tax-saving instruments

Here are the few tax saving instruments which select the best and save tax :)

Tax-saving instruments

Insurance:

All payments made towards both life and health insurance are eligible for tax benefits. Even contributions made towards pension payments can be eligible for tax benefits. Health insurance can let you save Rs. 15,000 over and above the ceiling of Rs. 1 lakh.

PPF:

It is one of the safest tax saving investments available. Both interest and capital withdrawal from the fund are tax free. However its drawback is the lock-in period of 15 years.

NSC, Post office (CTD) accounts: These are government savings schemes available at post office, with a lock-in period of 5 years.

Bank deposits:

These are special tax saving FDs offered by banks with a lock-in period of 5 years.

ELSS:

These are tax savings instruments offered by mutual funds, with a lock-in period of 3 years. They invest in various quality stocks.

To know more about ELSS click here
Source: Rediff