Best Tax Saving Investment Options Under Section 80C

4. Senior Citizen Saving Scheme

Senior Citizen Savings Scheme or SCSS is the most lucrative scheme among all the small savings schemes but it is meant only for senior citizens. An individual who has attained the age of 60 years or above on the date of opening of account or an individual who attained the age of 55 years or more and who has retired under VRS or SPL. An individual who has been retired under VRS can open an account individually or jointly with spouse.

Retired personnel of Defence Services can subscribe to the scheme irrespective of the age limit subject to fulfillment of specified conditions. Account can be closed after expiry of 5 years from the date of opening of account and account can be extended for next 3 years. Premature closure is permissible after one year subject to certain conditions.

5. National Pension Scheme

National Pension Scheme or NPS is meant to save money for the post retirement which invests money in different combinations of equity and debt. It totally depends on age and it can go up to 50 percent in equity. Even the annuity payable after retirement depends upon the age. NPS has almost six fund managers and 22 point of purchase banks.

6. Life Insurance Premium

Any amount that you pay towards life insurance premium for yourself, your spouse or your children can also be included in Section 80C deduction. Always remember life insurance premium paid by you for your parents or your in-laws is not eligible for deduction under section 80C. If you are paying premium for more than one insurance policy, all the premiums can be included. It is not necessary to have the insurance policy from Life Insurance Corporation, even insurance bought from private players can be considered here.