5 Popular Tax-Saving Schemes in India

Buy a life insurance plan in a few clicks

Now you can buy life insurance plans completely online right here.

  • Icon for Kotak Preferred e-Term Plan

    Kotak e-Term Plan

    Kotak e-Term Plan is a pure term plan that provides a high level of protection to your loved ones in your absence.

  • Kotak E-Invest Plan

    Kotak e-Invest is a comprehensive Unit Linked Life Insurance Plan that can be customized as per your goals and needs - be it protection; investment; financial security for child or retirement planning.

  • Icon for Kotak Guaranteed Savings Plan

    Kotak Guaranteed Savings Plan

    Kotak Guaranteed Savings Plan is a savings and protection plan that helps you achieve long-term financial goals and insurance cover against any eventuality.

  • Icon for Kotak Preferred e-Term Plan

    Kotak Lifetime Income Plan

    Kotak Lifetime Income Plan gives you the assurance of your income continuing throughout your life and in your absence throughout the lifetime of your spouse!

  • Icon for Kotak Preferred e-Term Plan

    Kotak Health Shield

    The Kotak Health Shield Plan helps secure your finances in times of sudden medical expenses related to illness such as Cardiac, Liver, Neuro and Cancer (all early and major stages of illness /conditions of Cancer); along with offering protection for Personal Accident - in case of accidental death or disability.


Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.


5 Popular Tax-Saving Schemes in India

Save Tax Now
  • 15th Feb 2022
  • 668

5 Popular Tax-Saving Schemes in India

Investments help in fighting inflation, build saving habits and grow our money in the long and short term. But how to manage investments is a concern for almost everyone. Not only that, tax saving is also another subject on which we all like to focus on. Thankfully, with the finest tax-saving plans in India, you can both save and earn money. The commencement of the fiscal year is the best time to plan for tax-saving investments as they will ensure year-long profits along with tax saving.

While we all want to save money on taxes, only a few are successful. The reason for this could be a lack of information or difficulties in incorporating the best-suited option into your investing strategy. Hence, in this article, we have compiled a list of the greatest tax-saving investing options in India to assist you in comparing and making an informed decision.

Unit Linked Insurance Plans or ULIPs

One of the most prominent investment strategies in India is the ULIP. It ensures that in the event of the death of the policyholder, one’s family is financially secure. The taxpayer can profit from the income tax act by acquiring a life insurance policy. The premium paid toward the acquisition of a life insurance policy is eligible for a deduction of up to ₹1.5 lakh under section 80C of the IT Act, 1961. Furthermore, income earned on the policy’s maturity is tax-free under section 10 (10D). Additionally, if the premium is less than 10% of the total assured, the income is tax-free. In the instance where the money is given to the nominee, the money is treated as tax-exempted in the nominee’s hands.

Public Provident Fund or PPF

PPF has long been a popular tax-saving option for taxpayers. The fact that PPF comes within the exempt tax status is one of the main reasons for its popularity. PPF accounts can be opened at a bank or a post office. The amount invested by taxpayers throughout the financial year can be deducted as per section 80C of the IT Act. The maximum investment amount in PPF is ₹1.5 Lakh that can be claimed for deduction. The return and maturity amounts are tax-free because PPF is under the exempt category. PPF accounts have a 15-year lock-in term and provide investors with the following alternatives, that is increasing the tenure by another five years or withdrawal of account proceeds.

 5 popular and efficient tax saving schemes in India

Sukanya Samriddhi Yojana or SSY

One of the most prominent tax-saving programmes is the Sukanya Samriddhi Yojana. The government of India launched it in 2015 as a component of the Beti Bachao Beti Padhao campaign. It had a significant impact on the public. The scheme allows for a fixed-income investment in which the customer can make regular deposits while also earning interest. Sukanya Samriddhi Yojana investments are also eligible for deductions as per section 80C of the Income Tax Act

National Pension Scheme or NPS

The National Pension Scheme has grown in popularity as a tax-saving scheme over the past few years. It’s a tax-saving alternative that both government and private employees can make use of. It allows the depositor to create a retirement fund while also receiving monthly income. The depositor’s money is invested in a variety of schemes, including the stock market. Tier-1 and Tier-2 NPS accounts are the two categories of NPS. The tier-1 account comes with a lock-in period that lasts until the subscriber turns 60 years old. The subscriber’s contributions to tier-1 are offered tax benefits under sections 80CCD (1) and 80CCD (2) (1B). Tier-2 accounts are purely voluntary, allowing the user to withdraw funds if and when they so choose.

Equity Linked Savings Scheme or ELSS

ELSS are mutual funds that invest a significant portion of your holdings in stocks. In addition, the fund has a three-year statutory lock-in period, which is the lowest among all investment products. Investments in ELSS funds are eligible for a deduction of up to ₹1.5 lakh as per section 80C of the IT Act, 1961. The deduction is available for both lump-sum investments and those made under a SIP. However, this investment comes with certain risks.

Now that you know about some of the most popular tax-saving schemes in India, go ahead and invest today! Your decisions today can make your tomorrow much better!

- A Consumer Education Initiative series by Kotak Life

Also read

    • 28th Jan 2022
    • 391

    What is the TDS Rate on Salary?

    TDS on salary needs to be collected based on the taxpayer's average income tax rate for the financial year.

    Read more
  • Guide for Tax Calculation on your Salary

    Tax Calculation on your Salary - Find out how to calculate tax on your salary in FY 21-22 here on this article. Visit Kotak Life website to know more ...

    Read more
  • ITR 1: Sahaj Form

    ITR 1 form is an important form, which is used by taxpayers whose income is less than INR 50 lakh per annum. Click here to know what is ITR form 1, ho...

    Read more

Related Plans

  • Kotak Group Secure One

    Kotak Group Secure One

    Kotak Group Secure One provides a comprehensive protection solution to enable your team members to protect their loved ones in the unfortunate event o...

    Know more
  • Kotak Assured Savings Plan

    Kotak Assured Savings Plan

    Kotak Assured Savings Plan is an affordable protection plan that enables you to accumulate wealth and strengthens your finances for the future.

    Know more
  • Kotak Guaranteed Savings Plan

    Kotak Guaranteed Savings Plan

    A Non-Linked Non-Participating Life Insurance plan

    Know more