Commonly used tax saving options for Individuals

Here are some commonly used tax-saving options in India for individuals.
1) Employee Provident Fund (EPF): EPF is a mandatory retirement savings scheme for salaried
individuals. The contributions made to EPF are eligible for tax deduction under Section 80C
of the Income Tax Act, up to a specified limit.
2) Public Provident Fund (PPF): PPF is a long-term savings scheme offered by the government. It
offers tax deductions under Section 80C, and the interest earned and withdrawals from PPF
are also tax-free.
3) National Pension System (NPS): NPS is a voluntary retirement savings scheme. Contributions
made to NPS are eligible for tax benefits under Section 80CCD(1), and an additional
deduction is available under Section 80CCD(2) for contributions made by the employer.
4) Equity Linked Saving Scheme (ELSS): ELSS is a type of mutual fund that invests primarily in
equity-linked instruments. Investments in ELSS are eligible for tax deductions under Section
80C, subject to the overall limit.
5) Tax-Saver Fixed Deposits: Certain banks offer fixed deposit schemes with a lock-in period of 5
years that qualify for tax deductions under Section 80C.
6) National Savings Certificates (NSC): NSC is a government-backed savings instrument that
offers tax benefits under Section 80C. The interest earned is taxable but is deemed
reinvested and eligible for deduction under Section 80C.
7) Unit Linked Insurance Plans (ULIPs): ULIPs are investment-cum-insurance products that offer
tax benefits under Section 80C. However, it’s important to carefully evaluate the charges and
fees associated with ULIPs before investing.
8) Sukanya Samriddhi Yojana (SSY): SSY is a savings scheme for the girl child. Contributions
made to SSY are eligible for tax deductions under Section 80C, and the interest earned and
withdrawals are tax-free.
9) Senior Citizen Savings Scheme (SCSS): SCSS is a savings scheme available to senior citizens. It
offers tax benefits under Section 80C, and the interest earned is taxable.
10) Health Insurance Premium: Premiums paid for health insurance policies for self, spouse,
children, and parents are eligible for tax deductions under Section 80D, subject to specified
limits.
11) Home Loan Interest: Deductions on home loan interest are available under Section 24(b) of
the Income Tax Act, subject to certain conditions.
12) Education Loan Interest: Interest paid on education loans is eligible for tax deductions under
Section 80E for a specified period.
These are only a small portion of the tax deductions available and you must carefully consider each
and every available deductions while filing your Income Tax Return.