Tax Savings financial products

Tax Savings financial products

With Tax season around the corner, it is necessary to make optimal decisions that will reduce your tax burden. There are various investment schemes available that not only help you avail tax exemptions but also help you achieve your long-term investment goals. 

Confused on which is the best investment scheme? We have shortlisted a few schemes below

1. Fixed Deposit

Some banks offer tax saving Fixed Deposits, which have a lock-in period of 5 years. These Tax-Saving FDs offer tax deduction under section 80C of the Indian Income Tax Act.
Click Here to open Fixed Deposit

2. Public Provident Fund (PPF)

This is one of the best options to save tax under section 80C of the Income Tax Act. Since it is backed by the government, it is a safe long-term investment option. You enjoy attractive interest rates and the returns are fully exempt from tax.
Click Here to invest in Public Provident Fund (PPF) through HDFC Bank Netbanking
Calculate your interest on PPF Investment

3. Sukanya Samriddhi Yojana

This scheme is especially designed to ensure your girl child has a bright future. SSY offers attractive rate of interest and is fully exempt from tax under Section 80C.
Calculate your maturity value on SSY Investment

4. National Pension Scheme (NPS)

This is a voluntary contribution retirement savings scheme, with an aim to provide retirement income to every citizen. Your savings are pooled in a pension fund which grows over the years. At the end of the scheme, you can withdraw the pension as lumpsum or purchase an annuity. Investing in NPS can get you extra tax deduction up to Rs.50,000/-.
Click here to know more

5. Atal Pension Yojana

You can now get assured pension with Atal Pension Yojana. You can contribute a small sum and avail a guaranteed pension of Rs.1000/- to Rs. 5000/-. The pension starts at the age of 60.
Click here to know how to apply for Atal Pension Yojna through HDFC Bank

6. Life Insurance

Life insurance has several benefits, from securing your family’s future to providing you an income stream. Your life insurance premium is deductible from your total income under section 80C. Also, the pay-out to a beneficiary in case of death is not taxable.
Click here to view Life Insurance policies being distributed by HDFC Bank

7. Health Insurance

You can get tax deduction on your health insurance premium under Section 80D of the Income Tax Act. It covers the policyholder, spouse, children and dependent parents of the policyholder.

8. Voluntary Provident Fund (VPF)

This is an additional contribution to your Provident Fund Account. The returns on maturity are tax-free.

9. Senior Citizens’ Saving Scheme (SCSS)

This scheme offers guaranteed returns to senior citizens. It is a Government-backed scheme offered to Indian residents above 60 years of age.

10. National Savings Certificate (NSC)

This instrument is issued by post offices and is backed by the government. The interest on your investment amount is compounded every six months. While the interest is taxable, you can later claim it as a deduction under section 80C.

Now that you know about the various tax-saving schemes, invest now!