Top 10 tax-saving investing strategies for sustained growth

tax-saving investing

Top 10 tax-saving investing strategies for sustained growth: Understanding taxes and managing your finances might seem like a maze, but there are ways to make it work in your favor. In India, the Income Tax Act offers great benefits to smart investors who plan ahead. By investing in specific ways, you can lower the amount of money the government takes as tax, and also grow your wealth. Let’s explore some easy and smart investment options that can help you save on taxes and earn good profits:

1. Public Provident Fund (PPF)

Think of PPF as a secure savings plan. You put your money in for 15 years, and in return, the government gives you a decent profit of about 7.1%. The best part? You don’t have to pay any tax on the money you make through this scheme.

2. National Savings Certificate (NSC)

NSC is like a fixed savings plan where you get a fixed profit of 6.8% over five years. It’s a safe option for people who don’t want to take risks with their money.

Read Also: Income tax: Plan your tax savings in advance; Here’s how to do it

3. Unit Linked Insurance Plan (ULIP)

ULIPs are a mix of savings and insurance. You invest for five years, and the profit you get depends on the plan you choose. Along with savings, it offers protection for you and your family.

4. Equity Linked Savings Scheme (ELSS)

ELSS funds are like investing in the stock market but with a shorter commitment of 3 years. They have the potential to give you good profits (around 12% to 15%), but they come with a bit of risk.

5. National Pension System (NPS)

NPS is a savings plan for your retirement. You invest money until you retire and get a good profit (around 8% to 10%). It ensures you have enough money to live comfortably when you stop working.

Read Also: Bank FD vs Senior Citizen Savings Scheme (SCSS): Interest rate, tenure, tax benefits

6. Fixed Deposit or Post Office Deposits

Fixed deposits and Post Office deposits are like putting your money in a safe box for a fixed time, usually five years. You get back your money with added profit (around 7% to 9%) without any risk.

7. Sukanya Samriddhi Scheme

This special scheme is for saving for your daughter’s future. You can invest a small amount every year, and when she grows up, she can use this money for her education or wedding. It offers a good profit of up to 7.6%.

Read Also: Tax on Interest Income – Saving Account, PPF, Fixed Deposits, bonds, R/D

8. LIC Life Insurance Investment

LIC offers life insurance plans where you pay a certain amount every year. This not only provides insurance coverage but also helps you save on taxes.

9. 9-Year Term Deposits under Post Office

These are similar to fixed deposits and Post Office deposits but with a longer commitment of nine years. They offer a secure way to grow your money steadily.

10. Residential House Property Investment

Buying a house with a loan can also help you save on taxes. If you pay interest on your home loan, you can reduce your tax burden.

Read Also: ITR: Avoid these 5 mistakes while saving Income Tax

Remember, smart investing is not just about saving on taxes; it’s about making your money work for you. It’s a good idea to talk to financial experts to figure out what works best for you. By investing wisely, you not only save on taxes but also build a secure financial future for yourself and your family.


Disclaimer: The article or blog or post (by whatever name) in this website is based on the writer’s personal views and interpretation of Act. The writer does not accept any liabilities for any loss or damage of any kind arising out of information and for any actions taken in reliance thereon.
Also, and its members do not accept any liability, obligation or responsibility for author’s article and understanding of user.

For Collaborating with us-

Tags: Uncategorized

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.
You need to agree with the terms to proceed