Comparison with Other Tax Saver Options

Other tax saver investment options include, Public Provident Fund (PPF), National Savings Certificate (NSC), and Equity Linked Savings Scheme (ELSS). PPF gives a fixed return and offers no tax on the return but your money will be locked for 15 years. On the other hand, NSC is available in two durations– 5 years and 10 years. In case of NSC, the interest is taxable as with tax saving FDs. ELSS funds have the shortest lock-in period of 3 years under the Section 80C option. But, they are highly volatile and involve more market risks.

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Financial Budget 2016 Speaks in Favor of Individual Taxpayers