&imwidth=800&imheight=600&format=webp&quality=medium "Top eight tax-saving investments every Indian must know about")
Some people invest their hard-earned money in mutual funds and stocks for returns. However, many want theirinvestments to earn modest returns as well as save their income tax.
These tax-saving financial instruments generally give lower returns than mutual funds. However, they are safer.
Here are the 8 schemes that one can invest in for tax savings.
Fixed Deposit
Fixed deposits offer fixed returns when their tenure ends. They are great financial instruments if you don't want your funds to be exposed to the market. They are one of the safety-saving options. Deposits with a minimum term of five years qualify for a tax deduction of up to Rs 1.5 lakh per annum.
Health insurance
Trending Stories
)
The Early Spring is proof not everyone can talk about their real feelings, and it is perfectly OK
)
UN votes to ‘correct the map’ as India backs fairer world view
)
Nigerian Navy discovers 99,000 litres of suspected stolen, illegally refined products as it intensifies anti-crude oil theft operations
)
Who is Aditi Paudel? 17-year-old becomes Japan's first literacy ambassador
)
Bengaluru: Officials find 40 kg expired chilli at chairman's club
)
Jaishankar rejects trade link to ending Ukraine war
)
Israeli strikes on Lebanon kill three, injure 23 despite truce
)
Alpine glacier was covered with sheep wool sheets to prevent melting. It worked
)
South Korea mulls deploying military assets to Strait of Hormuz
)
World's fifth-largest economy, British army can't afford to train
)
Breaking | Vance takes the podium: First White House briefing since Leavitt's exit
)
Taiwan raises 'concerns' over China's missile test
)
BRICS 2026: $1 trillion sovereign capital set to converge in Delhi for first iBRICS Summit
)
What is Iran's Pickaxe Mountain that Trump has again threatened to bomb?
)
UN votes to correct world map that visually shrank Africa for 450 years
)
Former NewJeans member Danielle launches YouTube channel, hints at new solo journey
)
Bangladesh batter Towhid Hridoy creates history with 350 not out in South Africa
)
Brendan Fraser’s transformation fuels The Mummy 4 excitement as fans welcome back Rick O’Connell
&im=FitAndFill=(700,400))
Krishna Janmashtami 2026: From Dhaniya Panjiri to Makhana Kheer- 5 best sweet dishes perfect for celebrating Lord Krishna’s birth
)
Donald Trump plans to travel to Ireland on Qatari-donated jet amid security concerns
)
Nazi-looted art to return to Jewish heirs
)
Eight killed in Kerala’s Thrissur after car rams into lorry parked on highway
&im=FitAndFill=(700,400))
Why Russian fighter jets use bulky, low-pressure tyres compared to US jets
)
FBI-wanted fraud accused arrested in Jalandhar over $600,000 scam
&im=FitAndFill=(700,400))
Why US tanks weigh over 20 tons more than Russian tanks
&im=FitAndFill=(700,400))
New Friday OTT releases (September 4, 2026): GDN, Dhamaal 4, Jagamae Sangeetham- Watch 6 new movies and TV shows on Netflix, Prime Video and more
)
Killing the Himalayas slowly: Human urine is melting a glacier on Mount Everest
Health insurance can also be used for tax savings. They also provide a safety net in case of medical exigencies. Under the Income Tax Act of 1961, one can get a deduction of Rs 25000 under Section 80D.
National Savings Certificate
The government-backed National Savings Certificate offers a tax deduction of up to Rs 1.5 lakh per annum. They are also considered safe investment options.
Pension Plans
These plans offer a fixed income after your retirement. A person pays an amount every year. Based on the corpus accumulated, they later earn a pension after retirement. The premiums are eligible for tax deduction of up to Rs 1.5 lakh per annum.
ULIP
A Unit-Linked Insurance Plan (ULIP) is an insurance product. The return of these insurance plans is linked to the market. It also provides an insurance benefit. Under Section 80C of the Income Tax Act, 1961, the premiums paid are eligible for a tax deduction of up to Rs 1.5 lakh per annum.
Endowment Plans
They are insurance. They offer a return on your investment and insurance coverage till you pay your premiums. They are low-risk and low-premium products. Under Section 80C of the Income Tax Act, 1961, the premiums are eligible for deductions of up to Rs 1.5 lakh.
Term Insurance
A term insurance is an insurance plan that offers financial protection. The premiums paid under term insurance are eligible for a tax deduction of up to Rs 1.5 lakh.
Mutual funds
Some mutual funds save tax. They are called Equity-Linked Savings Schemes or ELSS. They carry low risk compared to other mutual funds. Under Section 80C of the Income Tax Act, 1961, they qualify for a tax deduction of up to Rs 1.5 lakh.