Investing wisely can not only help grow your wealth but also significantly reduce your tax burden. With a variety of tax-saving investment options available, Angel One provides an excellent platform for individuals looking to optimize their tax planning strategies. Whether you are a salaried professional, self-employed, or a business owner, choosing the right tax-saving investments can help you maximize savings under Section 80C and other relevant provisions of the Income Tax Act.
Equity-Linked Savings Scheme (ELSS)
Why Choose ELSS?
- ELSS mutual funds are one of the best tax-saving investment options under Section 80C, allowing deductions up to Rs.1.5 lakh per year.
- They offer higher returns compared to traditional tax-saving instruments like PPF or FD.
- ELSS has the shortest lock-in period of 3 years among all 80C investments.
- Investors can invest in ELSS through Systematic Investment Plans (SIP), making it easier to build wealth gradually.
How to Invest in ELSS on Angel One?
- Log in to your Angel One account.
- Navigate to the Mutual Funds section.
- Select the ELSS category and choose from the best-performing funds.
- Start investing via SIP or lump sum mode.
Public Provident Fund (PPF)
Why Choose PPF?
- A government-backed investment with tax benefits under Section 80C.
- The interest earned and maturity amount are completely tax-free.
- Long-term investment with a 15-year lock-in period, ensuring disciplined savings.
- Ideal for risk-averse investors seeking stable and guaranteed returns.
How to Invest in PPF via Angel One?
- While PPF investments are made through banks or post offices, you can track and plan your PPF investments using Angel One’s financial planning tools.
National Pension System (NPS)
Why Choose NPS?
- Contributions to NPS are tax-deductible under Section 80CCD(1) & 80CCD(2), over and above the Rs.1.5 lakh limit of Section 80C.
- Offers an additional tax deduction of Rs.50,000 under Section 80CCD(1B).
- Provides a pension corpus with market-linked returns and an annuity option post-retirement.
- Allows investments in equity and debt based on risk preference.
How to Invest in NPS on Angel One?
- Open an NPS account online via the Angel One investment platform.
- Select the preferred fund manager and asset allocation.
- Start contributing regularly to build a tax-efficient retirement corpus.
Tax-Saving Fixed Deposits (FDs)
Why Choose Tax-Saving FDs?
- Safe and guaranteed returns investment option.
- Eligible for Section 80C tax deductions up to Rs.1.5 lakh per year.
- The lock-in period of 5 years.
- Suitable for conservative investors who prefer low-risk instruments.
How to Invest in Tax-Saving FDs via Angel One?
- While tax-saving FDs are typically offered by banks, you can use Angel One’s integrated banking investment services to compare and invest in the best FD schemes.
Unit Linked Insurance Plans (ULIPs)
Why Choose ULIPs?
- Offers dual benefits of investment and insurance.
- Premium payments qualify for tax deductions under Section 80C.
- Maturity proceeds are tax-free under Section 10(10D) if conditions are met.
- Allows investment in equity, debt, or hybrid funds, catering to different risk appetites.
How to Invest in ULIPs via Angel One?
- Choose from the best ULIP plans via the Angel One insurance marketplace.
- Select the premium amount and investment strategy.
- Invest and track returns over the long term.
Sukanya Samriddhi Yojana (SSY)
Why Choose SSY?
- A government-backed scheme to secure a girl child’s financial future.
- Tax benefits under Section 80C up to Rs.1.5 lakh per year.
- Higher interest rates compared to traditional savings schemes.
- Long-term investment with tax-free maturity benefits.
How to Invest in SSY via Angel One?
- While direct investments in SSY are done through banks or post offices, Angel One helps investors plan and monitor their long-term SSY contributions effectively.
Senior Citizens Savings Scheme (SCSS)
Why Choose SCSS?
- Exclusive scheme for senior citizens above 60 years.
- Offers higher interest rates than fixed deposits.
- Eligible for Section 80C tax benefits.
- The lock-in period of 5 years with quarterly interest payouts.
How to Invest in SCSS via Angel One?
- Use Angel One’s investment advisory services to track and compare the best SCSS options from leading banks and post offices.
Health Insurance Premiums (Section 80D Benefit)
Why Choose Health Insurance?
- Premiums paid for health insurance policies qualify for tax deductions under Section 80D.
- Maximum deduction limits:
- Rs.25,000 for individuals below 60 years.
- Rs.50,000 for senior citizens.
- Additional Rs.5,000 deduction for preventive health check-ups.
- Provides financial protection against medical emergencies.
How to Buy Health Insurance via Angel One?
- Explore and compare the best health insurance policies on the Angel One platform.
- Choose the plan that offers maximum tax benefits and coverage.
- Make premium payments and track policy details easily.
Final Thought
Investing in tax-saving instruments through Angel One helps you reduce your taxable income while growing your wealth efficiently. From ELSS and NPS to tax-saving FDs and ULIPs, Angel One provides a comprehensive investment platform for every financial goal.
To maximize tax benefits, consider diversifying across different investment options based on your risk appetite and financial goals.
Start your tax-saving investment journey today with Angel One and secure a financially stable future!
