In India, if someone’s been investing for a very long time, their purpose of investment might not be their retirement, not necessarily. It can be their secondary goal, but their main focus can differ from your assumptions. For example, a majority of Indians investing money in the varied best savings plan in India do it for the purpose of saving tax. Yes! A major percentage of Indian investors invest because of the tax rebate offered under the Section 80C of the Indian Income Tax law. Some small saving schemes could also be beneficial if you want to choose tax saving schemes for short term.

Section 80C of the Indian Income Tax law allows a tax deduction of Rs 1.5 lacs per annum from the taxable income for the purpose of investment. On that note, if you belong to the same school of investors or are interested in knowing about the schemes that let you benefit from the provision, check out the tax-saving investment instruments below.

  1. Fixed Deposit: Talking about the best options first, a Fixed deposit can help you invest and avail the tax rebate. In fact, the financial institutions offer an FD scheme specifically for the purpose known as Tax-Saver FD. You can invest Rs 1.5 lakh for a fixed tenor of 5 years and obtain tax-free income.

  1. Post-Office Term Deposit: If you are looking for similar options like FD, you can go for post-office term deposits. However, before you invest in this particular scheme, remind yourself of the lock-in period and invest accordingly.
  1. EPF/PPF: Last but not least, you can invest the same amount in PPF and EPF account and avail the tax benefits. PPF investment has higher rate of interest than saving accounts.

Bottom line: Before you invest in any of the above mentioned schemes, make sure to do the required research and gain the know-how regarding best investment strategies.

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