At some point in life, every individual, whether salaried or non-salaried, finds himself thinking of making investments that would help him save on taxes. Section 80C of the Income Tax Act, 1961, lays down a number of tax-saving investment options that are eligible for tax deductions up to a maximum investment of ₹1.5 lakh. 

Here are some of the investment options eligible for tax deduction under section 80C, and the minimum contribution required by each:

  • Public Provident Fund – One can invest as low as ₹500 in a financial year.
  • Life Insurance Premiums - They are a popular tool to get a deduction under section 80C of the Income Tax Act with the added benefit of protection. Typically, one can get a term insurance policy for amounts as low as ₹400 per month. 
  • ELSS – Equity Linked Savings Scheme has been specially designed with the purpose of tax savings. Under this scheme, one can start investing with an amount as low as ₹500 monthly
  • Sukanya Samriddhi Scheme – This scheme allows an account to be opened on behalf of girls aged up to 10 years. The minimum amount that can be invested under this scheme is ₹1000, annually.
  • National Savings Certificate – This is basically a tax-saving instrument with a maturity period of 5 years. A person can invest as low as ₹100 per year, in this certificate, and there is no limit on the maximum amount that can be invested.
  • Unit Linked Insurance Plan (ULIP) – A ULIP is an insurance product that covers life insurance and provides benefits of market-linked capital appreciation. One can generally invest in ULIPs with amounts as low as ₹1,000 per month. 
  • National Pension Scheme – This is meant for those looking for post-retirement schemes with maximum tax-saving benefits. One can start investing in this plan with a minimum amount of ₹1000 per month
  • Bank Fixed Deposit Scheme – FDs are security deposits. Being another popular tax-saving option, they can generally be started with minimum investment as low as ₹500 per month.