There is hardly anyone in the country who pays income tax and does not want to save tax! Isn’t it? Everyone believes that there should be a reduction in taxes. There are many ways to save tax, through which you can save tax and invest your money in the right place.

If you also want to save on taxes, then do not delay! Kindly ensure this task is completed by 31 March. By doing this, you can save up to ₹ 1.5 lakh in the coming financial year 2024–25 under Section 80C of the Income Tax Act. But yes, you will get this benefit only in the old system of income tax.

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Great ways to save on tax

If you are choosing the old system of income tax, then you can save tax by taking these measures before 31 March:

Sukanya Samriddhi Yojana: If you have a daughter in your house, then this scheme is for you only! Sukanya Samriddhi Yojana (SSY) is an excellent scheme for daughters. You can open a Sukanya Samriddhi account for your two daughters below the age of 10 years. It is currently receiving an interest rate of 8.2%. You can start investing in it with a minimum of ₹250. The best thing is that there is no tax on the interest received from this scheme.

Senior Citizens Savings Scheme: If you are more than 60 years old, then the Senior Citizens Savings Scheme (SCSS) is a wonderful way for you to save tax. In this, you can deposit money for five years. You can save tax up to ₹1.5 lakh by depositing from ₹1,000 to ₹30 lakh. This scheme is also getting interest at the rate of 8.2%.

Public Provident Fund: Public Provident Fund (PPF) is also a very popular way to save tax. PPF currently offers 7.1% interest. The government reviews the interest rate of PPF every three months, meaning the rate can change. You can save tax by depositing up to ₹1.5 lakh in PPF.

National Savings Certificate: National Savings Certificate (NSC) is also a suitable option to save tax. In this, you have to invest at least ₹1,000, and you cannot withdraw money for 5 years. This scheme is getting 7.7% interest. The NSC account matures after five years.

Mutual Fund Tax Savings Schemes, also known as ELSS (Equity Linked Savings Schemes), are another good way to save tax. In this case, you have to invest money for three years so that you can get a tax exemption.

Tax Saving Bank Deposit: To save tax, you can also get a 5-year tax savings fixed deposit (FD) in the bank. In this, you have to deposit money for 5 years, and you cannot withdraw money before 5 years.

Fact Check:

The interest rates and rules given in the article are correct as of March 7, 2025. The government may periodically alter interest rates, so ensure you verify the most recent information before making any investments. The limit of savings up to ₹ 1.5 lakh under Section 80C is for the old system of income tax. This facility is not available in the new system.

This article is for general information only; consult a financial advisor before investing.