In the last few years, women’s participation in investing has increased significantly. This shows that women today are taking a strong interest in managing their finances. In India, many investment options offer tax benefits. Most investors look for such options to save on taxes. Some of these options are available for both men and women, while others are meant for retirement.

Today, we will tell you about the investment options that women can use to save tax post-Budget 2025.

1. Sukanya Samriddhi Yojana (SSY)

Sukanya Samriddhi Yojana is a good tax-saving option for working women. It is also called SSY. This scheme helps parents save money for their daughter’s education and marriage. If your daughter is less than 10 years old, you can apply for this scheme.

This government scheme is under the EEE (Exempt-Exempt-Exempt) tax category. This means there is no tax on investment, income, or withdrawal. Section 10 (11A) of the Income Tax Act, 1961, gives this benefit. Investments in this scheme qualify for a tax deduction under Section 80C, with a limit of Rs 1.5 lakh.

2. National Savings Certificate (NSC)

Section 80C of the Income Tax Act allows tax deduction on investments in National Savings Certificates. The maximum deduction limit is Rs 1.5 lakh. This scheme, available in post offices, gives a fixed return of 7.7% with a minimum deposit of Rs 1,000. The interest rate is reviewed from time to time.

3. Public Provident Fund (PPF)

You can deposit a minimum of Rs 500 and a maximum of Rs 1.5 lakh in a financial year under this scheme. PPF is a good investment option for women who want to save tax and earn good returns.

The government has fixed the PPF interest rate at 7.10% per year till the third quarter of the financial year 2025. There is no tax on the interest earned and the amount withdrawn. You can also claim tax benefits under Section 80C. The maturity period of a PPF account is 15 years, but it can be extended in blocks of five years.

4. Life and Health Insurance

Insurance provides financial security and helps in saving tax. Women can claim tax benefits on life insurance policies taken for themselves, their spouses, or their children. However, the deduction cannot be more than 10% of the total sum insured.

For people with certain diseases, this limit is 15% under Section 80U of the Income Tax Act. Tax deductions are also available for health insurance premiums paid for yourself, your spouse, children, and parents.

5. Equity-Linked Savings Scheme (ELSS)

Section 80C of the Income Tax Act provides tax benefits for investments in Equity-Linked Savings Schemes (ELSS). Since these investments depend on the stock market, they have higher risks. ELSS has a lock-in period of three years. This option is good for women who are ready to take risks for higher returns.

6. Employee Provident Fund (EPF)

Tax benefits can be claimed under Section 80C on investments of up to Rs 1.5 lakh in EPF (Employee Provident Fund) in a financial year.

7. National Pension System (NPS)

Apart from the Rs 1.5 lakh deduction under Section 80C, NPS investors get an extra tax deduction of up to Rs 50,000 under Section 80CCD (1B). This means they can save tax on investments of up to Rs 2 lakh.

8. Tax-Saving Fixed Deposit (FD)

Banks and post offices give tax deductions under Section 80C on fixed deposits with a minimum lock-in period of five years. The tax deduction limit is Rs 1.5 lakh per year. However, the interest earned on these FDs is taxable.

9. Home Loan Benefits

Under Section 80C, you can claim a tax deduction of up to Rs 1.5 lakh per year on repayment of the principal amount of a home loan. You can also get a tax benefit of up to Rs 2 lakh on the interest paid on your home loan under Section 24(b) of the Income Tax Act.

10. Senior Citizen Savings Scheme (SCSS)

Investments made in the Senior Citizen Savings Scheme (SCSS) qualify for tax deductions under Section 80C. This scheme is made for senior citizens and gives stable returns with tax benefits.