Best investment options to save tax: With proper tax planning, you can save on a large chunk of your hard-earned income. To start carefully planning your investments, it is advisable to start reading about all the different plans and options available to you. A thorough understanding of the different diets and how they can benefit you will ensure successful results. Another important thing to keep in mind before investing is to start early and be patient. Hastily and poorly thought out investment decisions can lead to unnecessary losses.

In order to help you save taxes and increase your income, here is a list of investment options for you to consider.

1) Public Provident Fund (PPF)

Opening a PPF account to save tax has been a popular investment option for years. A PPF account can be opened with any bank or at the post office. A PPF account falls under the exempt category, hence, interest earned and the maturity amount are exempt from tax. The lock-in period on PPF accounts is 15 years.

2) Term Life Insurance Policy

A life insurance policy provides you and your family with a safety net in case of any untoward incident. It is one of the most important investment options, as it secures your family financially. The premium paid on a policy qualifies for tax deductions. If a policy is purchased on or before March 31, the policyholder is liable for a tax benefit in the same fiscal.

3) Senior Citizens Saving Scheme

This is an income-tax saving scheme designed especially for senior citizens above the age of 60 years. Investors can invest a minimum amount of ₹ 1,000 which is liable for a tax deduction of up to ₹ 1.50 lakh. This is a long-term saving opportunity and has a maturity period of 5 years.

4) National Savings Certificate (NSC)

This investment program is reliable because it is backed by the Indian government. An NSC is a fixed income investment program that allows middle and small income investors to earn higher returns. NSC investments offer the benefit of tax exemption up to Rs 1.50 lakh. It also offers investors guaranteed interest.

5) Fixed bank deposit (FD) at 5 years

A 5 year fixed bank deposit account is often viewed as a safe option for saving tax. Opening a FD is considered a safe investment because interest rates are decided by the bank and the risk is lower than investing in stocks, and returns are guaranteed. Seniors can benefit from a higher interest rate.