Tax season is upon us, and many people struggle to find ways to save on taxes while maximizing their savings. Luckily, there are a variety of investment options available that allow you to save on taxes while earning great returns.
Let’s dive into the top 5 tax-saving investments for 2025.
1. ELSS (Equity Linked Savings Scheme)
- Returns: 12-15% p.a.
- Tax Benefits: Up to ₹1.5 lakh tax exemption (Section 80C).
- Lock-in Period: 3 years
- Ideal For: Those willing to take a moderate risk for high returns.
2. PPF (Public Provident Fund)
- Returns: 7.1% p.a.
- Tax Benefits: Fully tax-exempt.
- Lock-in Period: 15 years
- Ideal For: Conservative investors seeking long-term tax savings.
3. National Pension Scheme (NPS)
- Returns: 8-10% p.a.
- Tax Benefits: Up to ₹50,000 additional tax savings.
- Lock-in Period: Until retirement
- Ideal For: Those planning for retirement with tax savings.
4. Fixed Deposit (Tax-Saving FD)
- Returns: 5-7% p.a.
- Tax Benefits: Tax deduction up to ₹1.5 lakh.
- Lock-in Period: 5 years
- Ideal For: Low-risk savers who want guaranteed returns.
5. Sukanya Samriddhi Yojana (SSY)
- Returns: 7.6% p.a.
- Tax Benefits: Exempt from tax.
- Lock-in Period: 21 years
- Ideal For: Parents saving for their daughter’s education and marriage.
