What are the different ways in which I can save tax?

I plan to invest money around Rs 20,000 to save from Tax. What are the options available for me. I have already invested money in LIC policy. But now I’m left with some more money to invest. Some of the options I have come across are
1. National Savings Certificate
2. PPF account
3. Fixed Deposit

I’m not interested in MF or ELSS

5 Replies to “What are the different ways in which I can save tax?”

  1. Your options in descending order:
    1. PPF
    2. 5 year Tax Saving Fixed Deposit
    3. NSC

    Unfortunately you are not interested in the best options i.e. ELSS & a Pension Plan. These are market linked and give good returns in the long term.

  2. Rather than going for NSC or Fixed deposit, u should go for PPF option because Interest from NSC / FD are taxable.

    For PPF, interest is tax free
    It is one of the safest deposit scheme
    15 yrs locking but u can withdraw partial money after 6 yr.

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