BANGALORE: When one starts getting good salary then the gates open for expectation, expenditure, happiness and the unforgettable taxes. Yes, tax saving is a crucial task to perform and there are high chances that you might resist to do it saying that it’s too early. But, one needs to do proper planning instead of reckless spending in order to save taxes. According to section 80C of the Income tax Act, certain investments are deductible from the total income thus lowering your taxable fraction.

Let’s have a look at some of the fresh investment options under Section 80C after the new Budget 2014:

1. Public Provident Fund

When we talk about the best and safest long term investment options then it is none other than PPF. It is the first thing that strikes our mind while we plan to save money. This is a 15 year investment plan which is good for both business and salaried people. With a tax free 8.8 percent interest, one need to submit at least an amount of 500 and a maximum of 1 lakh per year. As PPF is placed under Income-tax section 80C, it gives a tax exemption for salaried people.

Once you make an investment in the 1st year you can withdraw it only in the 7th year. However, loan against investment is available from 3rd financial year. If liquidity is not an issue, you should invest as much as you can in this scheme before looking for other fixed income investment options.