Tax Saving Investment Scheme:  People invest their hard-earned money in different equity-linked funds or government schemes for handsome returns in the long term or short term. However, everyone must pay attention to the tax-saving aspects before investing.

ELSS is a good alternative to mutual funds, but it will not give you fixed returns. Today, we will talk about four such government schemes that give you the best tax-saving features. 

By investing in the above schemes, you can earn the benefits of tax savings through sections of the Income Tax Act, 1961, like Section 80C, 80D, 80CCF, etc.

Public Provident Fund (PPF)

PPF is a better option for tax-free investment with attractive returns. PPF's annual interest rate is 7.1 percent. The interest rate of PPF is based on compound interest. However, the interest rate of the Provident Fund Scheme keeps changing as notified by the Finance Ministry every quarter. You can invest in a Public Provident Fund with a minimum of Rs 500 and a maximum of Rs 1,50,000 can be invested in the fund in a financial year. Your deposited amount will be eligible for tax deduction under Section 80C of the Income Tax Act.

National Pension Scheme 

NPS is a voluntary retirement savings scheme run by the Government of India. This scheme allows Indian citizens to make systematic savings during their working life. Under the National Pension System as per the government, the funds are deposited in a pension fund under the supervision of professional fund managers of PFRDA. The manager invests the investment money as per the rules in various portfolios of government bonds, bills, corporate debentures, and shares.  You will be able to avail the benefit of tax savings under section 80 CCD (1) and 80 CCD (1B) on the return amount of the scheme.

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Sukanya Samriddhi Yojana(SSY)

The interest rate available on Sukanya Samriddhi Yojana is 8% per annum. This is a special scheme, parents can open a Sukanya account in the name of their girl child below 10 years of age. Sukanya Samriddhi Yojana account can be easily opened in any Indian bank or post office. Under Sukanya Yojana, only two girls from a family can get benefits. You can start investing in Sukanya Yojana with a minimum amount of Rs 250. Under the scheme, a maximum of Rs 1,50,000 can be deposited in a financial year. The deposited amount will be eligible for tax deduction under Section 80C of the Income Tax Act.

Senior Citizens Savings Scheme (SCSS)

This scheme is one of the most profitable investment options for senior citizens. Senior Citizens Savings Scheme offers investors an interest of 8.2% per annum. A person above 60 years of age can open a SCSS account in banks or post offices. The maturity period of the investment scheme is 5 years. In case of the death of the investor, the nominee will earn interest at the savings account rate. This investment also offers tax-saving benefits under Section 80C of the Income Tax Act, of 1961.

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