10 Best Investment Options To Save Tax

9. Pension Plans

Life insurance companies started offering pension plans in 2013. However, the charges of these plans are significantly higher than those of the NPS.  A typical pension plan from a life insurance company charges almost 3-4 percent, while the NPS has a fund management charge of 0.25 percent.

Few mutual funds also have pension plans. The Templeton India Pension Plan is one of the oldest schemes in the market and offers deduction under Section 80C. It is a debt-oriented fund that invests 30-40 percent of its corpus in equities and the rest in debt.

10. Rajiv Gandhi Equity saving Scheme (RGESS)

RGESS can be an avoidable option for the first-time equity investors. The RGESS 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 the RGESS, you have an option to claim a deduction of 50 percent of the invested amount. The maximum investment is Rs.50,000, so the maximum deduction can be of Rs.25,000. This option is applicable for money over and above Rs.1 lakh limit available under Section 80C.

RGESS also provides you with flexible lock in option where you can sell or share your mutual funds or reinvest the proceeds in any other RGESS instrument. This will help you to choose better options over underperforming investments.

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