10 Best Tax Free Investments


BANGALORE: The most repeated mistakes many people do are, by choosing the wrong tax saving instruments. There are many tax saving methods available, but good financial planning involves choosing the right tax saving plans. A proper planning can save tax burdens as it gives you enough time to understand and make best use of the options available. Here is a list of 10 best tax saving tools available.

1. Public Provident Fund (PPF)

Public Provident fund is the topmost tax saving option. This scheme is a popular long-term investment option backed by Government of India, which offers safety with attractive interest rate and returns that are fully exempted from tax.

The ease of opening an account and liquidity makes it a perfect financial instrument. Deposit to Public Provident Fund is tax deductible for individual taxpayers in India under section 80C of Income Tax Act, 1961. The Public Provident Fund is useful for high-risk investors, self-employed professionals and those who are not covered by the Employees Provident Fund and other benefits.

2. Unit Linked Insurance Plan

This Plan is a combination of insurance as well as investment that offers tax saving options under Section 80C.  While taking Ulips, one should be fully aware of their policies, because there are conditions like if you forget to pay premium for at least once then your policy will be discontinued.

Unit Linked Insurance Plan policy holders can make use of features such as switching between various funds during the tenure of the policy, reduce or increase the level of protection, options to surrender, additional riders to enhance coverage and returns as well as tax benefits.

READ MORE: File Tax Returns Before Deadline: 4 Easy Steps

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