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Thursday, 11 February 2016

Tax Saving Investment Options For Financial Year 2015-16

We are in the last quarter of the Financial Year and again it is the time when everybody is looking at various investment options not for the sake of investing but solely to reduce their tax burden. It is good to plan your taxes well in advance but it is equally important to invest wisely. Thus one should make most of the Tax exemption available under various Sections while being very careful with their Investments. It is advisable to diversify your investments so that you are adequately covered and are able to maximize your wealth at the same time.

In this post, I will discuss some of the potential investment options for the Investors. Individuals based on their needs and preference may chose to invest in them, as it will not only serve as a Tax Saver but are viable Investment options too.

Tax Saving Options U/S 80C (Deductions up to Rs 1,50,000/-)

Investment Perspective

Public Provident Fund (PPF): Public Provident Fund Scheme is for Individuals who are looking at long term Investment option but are reluctant to take any risks. PPF not only offers decent return on Investment but also protects your Investment from potential market risks. Investment is eligible for Tax Deduction.


Equity Linked Saving Scheme (ELSS): This Investment is designed mainly for Individuals looking at short term Investment options and also are willing to take moderate risk with their investment. In my opinion, with Equity market slowing down, it is a good time to invest in ELSS. Investment in this scheme is eligible for Tax Deduction.


National Saving Certificate (NSC): It is good investment option for Individuals who are looking for short term investment schemes without taking any risk with their money. This scheme provides decent return on Investment. Investment is eligible for Tax Deductions.


Insurance Perspective

Term Insurance Plans: Every Individual should have a Term Insurance plan in his/her portfolio. Term plan is very economical and offers greater financial protection to your loved ones in case of any eventuality. Insurance Premium is eligible for Tax Deduction.


Unit Linked Insurance Plans (ULIPs): It is a hybrid investment scheme, which provides Insurance cover and at the same time ensures maximization of wealth. It aims and reaping the benefits investment in Equity and providing insurance cover in a single plan. Investment in the schemes is eligible for Tax Deduction.


Tax Saving Schemes U/S 80 CCD 1b (Deductions up to Rs 50,000/-)

Retirement Plan

National Pension Scheme (NPS): It is a social security scheme launched y the Government of India and is aimed at providing retirement benefits to the Individuals.


Tax Saving Schemes U/S 80D (Deduction upto Rs 25,000/-)

Health Insurance

Cashless Insurance: Mediclaim Insurance policies is a must in Health Insurance as it provides cashless mediclaim treatment to the Individual’s and their family members covered under the Insurance Plan. It takes care of medical emergencies in the family. Premium paid on Insurance is eligible for Tax Deductions.


Critical Illness Insurance: Another very important type of Health Insurance is Critical Illness Insurance. This scheme provides lumpsum benefits incase of any Critical Illness being suffered by Individual or his/her family members.

Read More About Critical Illness Insurance

Individuals may consider some of the above mentioned Schemes for Investment as well as to Save Tax for the Financial Year 2015-16. Individuals may also check out Sukanya Samridhi Scheme and Senior Citizen Savings Scheme if they are eligible for investment in the same.

Senior Citizen Savings Scheme (SCSS)

Sukanya Samridhi Scheme

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