People are always interested in investment. Some investment sources are easy on tax rates. It means you have to pay less tax after you have invested and get interested in that.
You may save taxes by investing in tax-saving Fixed Deposits, which provide tax breaks. Investing in tax-saving fixed deposits allows you to claim a deduction. Such FDs have a 5-year lock-in term and the interest generated is taxable. Interest rates typically vary from 5.5% to 7.75%.
PPF ( Public provident scheme )
The Employee Provident Arrangement is a popular tax-saving investment instrument. To get started with this long-term savings and investment option, create a PPF account at the post office or approved branches of public and private sector banks. Investments to the fixed deposit earn a fixed rate of return.
ULIP (Unit linked insurance plan)
ULIPs are long-term investment products. These provide the option of investing in equity funds, debt funds, or both. Furthermore, ULIPs allow you to swap between funds to your financial objectives.
National Savings Certificate
National Savings Bonds are a savings bond plan that encourages low to middle-income participants to participate while saving tax.