1. Equity-linked
Savings Scheme – Has lock-in of 3 years; can be invested up to be a maximum of
Rs.1.5 lakhs under 80C and others:
2. Public
Provident Fund – Has lock-in of 7 years, investments are eligible for tax
exemption u/s 80C
3. National
savings certificates – NSC-VIII has a lock in period for 5 years and NSC-IX has
lock in for 10 years. There is no maximum limit of investment in NSC, but you
can claim a tax deduction for Rs 1.5 lakhs under section 80C
4. Tax
free bonds – These bonds are not eligible for deduction under section
80C. It means that the interest earned on tax-free bonds is exempted from
taxation. However, the bonds are subject to capital gains tax. Usually these
bonds have a lock in period of 5 years
5. Insurance
policies – Though these can be used for tax savings under Section 80C,
Rego advises that the principal aim of insurance should be to cover life risk
rather than as an investment instrument.
6. Sukanya
Samridhi Scheme (If the investor has a girl child)-
Investments can be withdrawn only after girl turns 21 or 50 per cent of the
corpus when girl turns 18 or gets married