Tax Saving Investment Options For The Financial Year 2017-18

• Posted By Amritesh
• On April 9th, 2017
• Comments: no responses

The New Financial Year is here and I’m pretty sure that most of you have started with your investment/tax planning for the year.

The Investment Schemes discussed here can provide you with maximum tax saving Under Section 80 (C) of Rs 1,50,000/-. Please refer to the links shared below to read in details about the schemes and benefits offered.

I will be discussing the some of the notable investment options available under various Sections in my upcoming post for the Financial Year 2017-18. However, in this article I will restrict only to investment options which offer decent returns under section 80C. Do subscribe to my Wealthtech Speaks Blog and Youtube Channel for more updates.

The Investment schemes “Header” are hyperlinked to the articles covering the same in details.

Tax Saver Term Deposit: Tax Saver Term Deposit (Fixed Deposits) is the easiest investment option available in the market. Bank account holders may make the investment online with their respective banks, the return provided on the investment is between 6.75% to 7.5% with the minimum lock in tenure of 5 years.

National Savings Certificate (NSC): NSC is available primarily through Post Offices and investment in the scheme is fairly easy. One needs to visit the regional Post Office branch and purchase the NSC Certificate. The tenure of Investment is 5 years and it is a deferred tax scheme wherein the return on investment is taxable.

Public Provident Fund (PPF): The only reason to include this scheme is that it provides decent return and one can keep investing annually till 15 years and more. Individuals interested to invest in PPF need to visit their Bank Branch office and fill up a simple form and within a day the account is opened. Investment may be made through netbanking after the account is activated. Currently, the Investment earns an interest of 7.9%, the rate is reviewed and revised on quarterly basis.

Equity Linked Savings Schemes (ELSS): One of the best and shortest investment scheme in my opinion. It has a lock in period of 3 years and the investment made is deployed in Equity market which promises better returns when compared with fixed return plans. However, since the return is market linked it does carry moderate risk so one should be careful with the plans they opt for Investment. The investment is diversified into various sectors and stocks which minimizes the risk while increasing the possibilities of higher return.