Page 1

Tax Saving Schemes


Equity Linked Savings Scheme ●

They offer the best returns in comparison with other tax-saving schemes in India. No guarantee of returns, but taking the risk will offer 12% to 15%. The lock-in period is three years. Dividend option can be chosen to receive regular income. Capital gains / returns from the sale of such funds are exempt from tax.


Sukanya Samriddhi Account Scheme ●

Available for individuals with female children.

The interest rate for FY 2017-18 is 8.1%.

Guardians / parents are allowed to make deposits until the child turns 15 years old. The maturity of the account happens when the child attains 21 years of age. Deposits cannot be made when the child is 16 to 21 years of age. The interest you receive on maturity is exempt from tax.


Tax-Saving Bank Fixed Deposit Schemes ●

It is among the oldest and most profitable investment options.

The interest rates range from 6% to 7.2%.

The lock-in period is five years.

The interest you receive from these schemes are subject to tax.


Senior Citizen Saving Schemes ●

Senior citizens get guaranteed returns through these schemes.

The schemes are backed by the Government of India.

The interest rates are around 8.4% per year.

The maturity period is five years.

Interest payments are done at the completion of each quarter.

The maximum investment is restricted to Rs.15 lakh.

The interest received is subject to tax.


Rajiv Gandhi Equity Saving Scheme ●

Individuals who are investing in this scheme for the first time and earn under Rs.12 lakh per year can avail tax benefits through this scheme. The maximum investment limit is Rs.50,000. This amount can be invested in Rajiv Gandhi Equity Saving Scheme and BSE100 stocks. Tax benefits can be availed on 50% of the invested amount.


New Pension Scheme ●

This instrument has offered 12% to 14% returns in the past five years. It is a low-cost option. The minimum amount that can be invested is Rs.500 per month. There is no limit on the maximum amount that can be invested.

Choices for allocation include gilts, bonds and equity.

The amount received on maturity is subject to tax.


National Saving Certificates ●

This instrument is backed by the Indian Government.

They can be availed for a period of five years.

The minimum investment that can be made is Rs.500.

No maximum investment limit.

The interest rate associated with NSCs is 8% per year.

Interest is compounded on a semi-annual basis.

The interest you receive is subject to tax, but can be claimed as exemption under Section 80C.


Contact Us Thank you for checking through our slide show. For more information about Tax Saving, Income Tax Calculator, go through BankBazaar.com

Tax saving schemes  

There are various sections of the Income Tax Act, 1961 which deal with tax deductions and exemptions such as Section 80C, 80D, 80CCF and oth...

Tax saving schemes  

There are various sections of the Income Tax Act, 1961 which deal with tax deductions and exemptions such as Section 80C, 80D, 80CCF and oth...

Advertisement