Public Provident Fund (PPF)
Return - 8% pa,
Tenure - 15 years,
Minimum investment - Rs 500,
Maximum investment - Rs 70, 000.
Assured but not fixed returns since interest rates change as per government rules from time to time, amount invested can be deducted from taxable income.
Employee Provident Fund (EPF)
Employer and employee contribute 12% of annual income.
Out of the total 24% contribution, 8.33% is given towards a family pension plan.
The remaining portion (15.67%) grows at a rate of 8.5% per annum.
Amount invested can be deducted from taxable income.
Read on for some more tax saving investments...
Image: Denise Jameson wears a costume while carrying a sign to remind people passing on foot and in cars that it is income tax filing season outside a tax consulting business in San Francisco, California. | Photograph: Robert Galbraith/Reuters
Also read: Smart ways to be financially aware
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