Maximize Your Wealth: Have You Planned Your Taxes Yet?

Tax saving is an essential tool for investors looking to enhance the tax-adjusted returns from their portfolio. Several investment options provide tax benefits while offering growth potential. Let’s explore some of the best tax-saving instruments that can help reduce your tax liability while building wealth.

Equity Linked Savings Scheme (ELSS)
ELSS is one of the most popular tax-saving investments under Section 80C. With a minimum 80% equity allocation, it offers comparable better returns and comes with a three-year lock-in period. Under Section 80C, investments of up to Rs. 1.5 Lakh are deductible and also have a long-term capital gains benefit.

Public Provident Fund (PPF)
PPF, a government-backed instrument, offers tax benefits under Section 80C. However, it has a long lock-in period of 15 years. PPF provides an interest rate, (As of March 2025, the Public Provident Fund (PPF) interest rate remains at 7.1% per annum, compounded annually, and has been unchanged since April 2020) determined quarterly by the government, and contributions up to Rs. 1.5 Lakh deductible under Section 80C and interest earned are tax-free.

Senior Citizen Savings Scheme (SCSS)
SCSS is a great option for senior citizens, providing a tax deduction of up to Rs. 1.5 Lakh under Section 80C. The maximum investment is Rs. 30 Lakh, and the interest rate is government-fixed. It’s available to those 60 and above, or 55+ if they opt for voluntary retirement.

Sukanya Samriddhi Yojna (SSY)
This scheme encourages saving for a girl child’s future. Only parents of girls under 10 years old can open an account. SSY offers tax benefits of up to Rs. 1.5 Lakh per year and provides a higher interest rate than PPF, making it a strong tax-saving tool.

Tax Saver Fixed Deposit (FD)
Fixed deposits with a five-year lock-in period qualify for tax benefits under Section 80C. Though safe and offering fixed returns, the interest earned is taxable. Premature withdrawals will nullify tax advantages.

National Pension Scheme (NPS)
NPS is a retirement-focused investment that allows tax deductions of up to Rs. 1.5 Lakh under Section 80C. Employees can also contribute 10% of their salary tax-free, while self-employed individuals can claim an additional Rs. 50,000 under Section 80CCD(1B). NPS allows equity-based investments as well.

National Savings Certificates (NSC)
NSC offers tax-saving benefits under Section 80C with a fixed maturity of five years. Contributions up to Rs. 1.5 Lakh qualify for deductions, and the interest earned is reinvested, increasing the overall return.

Life Insurance
Premiums paid towards life insurance policies are eligible for tax deductions up to Rs. 1.5 Lakh under Section 80C. This helps reduce taxable income while providing financial protection.

In conclusion, these tax-saving instruments not only help reduce your tax liability but also support long-term financial goals. Choose the one that aligns with your risk profile and tax-saving needs.

To know more and invest rightly, Please call C.Karthik:70325 33609 or L.Kalpana: 74166 64249