10 Best Tax Free Investments
3. Senior citizen saving scheme
This is meant for those who have touched 60 years and want a place to invest for the medium term. This saving scheme offers nine percent annual interest on deposits. One can open multiple saving scheme accounts but the total amount of investment cannot exceed 
15 lakh. Thus, Senior Citizen Saving Scheme investment qualifies for deduction under section 80c, but the interest gained is taxable.
4. Voluntary PF
Voluntary provident fund is an extension of Employee’s provident fund. It provides an easy way to save for retirement years from the current pre-tax income. The investment is an uncomplicated process where one has to inform the Employer about the decision of contributing to Voluntary provident fund once at the beginning of a financial year. Once initiated the employer will deduct 12 percent of the basic and dearness allowance for the salary to the voluntary PF account, but one cannot stop contributions in the middle of the year. One of its drawbacks is limited liquidity and the cash cannot be withdrawn until they retire.
5. New Pension Scheme
New Pension Scheme is an ideal asset for retirement planning. Any individual aging between 18 and 55 years can invest in New Pension Scheme, but the tax deductions are allowed only for contributions to a tier-I NPS account with a minimum annual investment of 6,000 a year, without any premature withdrawals until the age of 60.
