10 Best Tax Free Investments
6. Pension Plan
Life insurance companies offer pension plans and provide tax deductions under Section 80C of the Income Tax since 2013. The downside of such pension plans is the high fund management charges compared to the government owned national pension scheme. Few mutual funds also have pension plans. The Templeton India Pension Plan is one of the oldest schemes in the market.
7. Rajiv Gandhi Equity saving Scheme
Rajiv Gandhi Equity saving Scheme offers tax savings for a year for the first-time investor. The additional tax savings for a year, under the newly introduced, Section 80 CCG to the first-time equity investors who earn up to Rs 12 lakh. If you invest in this Scheme, you have an option to claim a deduction of 50 percent of the invested amount. The maximum investment is 
50,000, so the maximum deduction can be of 25,000. This option is applicable for money over and above 1 lakh limit available under Section 80C.
8. Life insurance policies
The premium paid for a policy covering the individual and his or her immediate family is deductible up to 1 lakh under Section 80C of the Income Tax Act. You can buy both cash-back endowment plans as well as term insurance plans. It is seen that often cash-back and endowment insurance policies score low on the flexibility scale. You are supposed to keep paying the premium for the rest of the term once you buy a policy.
