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Are there any tax-advantaged investment vehicles for individuals?

Curious about Taxes Investment

Are there any tax-advantaged investment vehicles for individuals?

Yes, there are several taxadvantaged investment vehicles available for individuals in India. Some of the most common ones include:

1. EquityLinked Savings Scheme (ELSS): ELSS is a type of mutual fund that invests in equity and equityrelated securities. It comes with a lockin period of three years and provides tax benefits under Section 80C of the Income Tax Act. The maximum deduction available under this section is Rs. 1.5 lakh.

2. Public Provident Fund (PPF): PPF is a longterm investment scheme offered by the government of India. It has a lockin period of 15 years and provides tax benefits under Section 80C of the Income Tax Act. The interest earned on PPF is also taxfree.

3. National Pension System (NPS): NPS is a pension scheme offered by the government of India. It provides tax benefits under Section 80CCD of the Income Tax Act. The maximum deduction available under this section is Rs. 1.5 lakh.

4. Unit Linked Insurance Plan (ULIP): ULIP is a type of life insurance policy that also provides investment opportunities. It comes with a lockin period of five years and provides tax benefits under Section 80C of the Income Tax Act. The maximum deduction available under this section is Rs. 1.5 lakh.

5. Sukanya Samriddhi Yojana (SSY): SSY is a savings scheme designed for the girl child. It provides tax benefits under Section 80C of the Income Tax Act. The interest earned on SSY is also taxfree.

It is important to note that the tax rules for these investment vehicles may change from time to time, so it is advisable to consult a financial advisor before making any investment decisions.

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