Best Tax Saving Investment option under Sec 80C

Some of  Tax Saving Investment options under Sec 80C are as detailed below:- 

1. ELSS (Equity Linked Savings Scheme) or Tax Saving MF's : Investment in ELSS Fund or Tax Saving Mutual Fund is considered as the best tax saving option. These funds are specially designed to give you dual benefit of saving taxes & getting higher returns on investment. These are tax-saving mutual funds that invest at least 65% of their assets in the stock markets. ELSS funds are best placed to help you earn inflation-beating returns over the long-term because of their equity exposure. Even though these tax-saving mutual funds don’t offer guaranteed returns, the best-performing ones have generated 12-15% returns over the long-term through the power of compounding interest. Additionally, since ELSS funds are equity-oriented funds, all gains on investments held for over one year are levied 10% LTCG (Long Term Capital Gains) tax for the investor.
• Lowest locking period of 3 years
• Delivered historically higher returns than FD, PPF or NPS
• Interest earned is partially taxable
2. Investment in Tax Savings FD's : Tax-saving FD's are like regular fixed deposits but come with a lock-in period of 5 years & tax break under Section 80C on investments of up to Rs 1.5 lakhs.
• Can be opened by Resident Indian individuals
• Fixed Deposits have lock-in period of 5 years
• FD interest rate across different banks ranges from 5.5% to 7.75%
• Minimum investment limit is Rs.1,000
• Interest earned in taxable
3. Investment in PPF (Public Provident Fund) : PPF are long term investments backed by government of India. Deposits made in a PPF account are eligible for tax deductions under Section 80C.
• Can be opened by Resident Indian individuals, salaried and non-salaried individuals. A HUF cannot open a PPF account
• Have a lock-in period of 15 years, but can be further extended by 5 years
• Partial withdrawals are allowed after 7 years
• Current interest rate is declated by GOI is 8.0% p.a.
• Minimum and maximum investment limit is Rs 50 and Rs 1.5 Lakhs respectively
• Interest earned is tax-free
4. Investment in NPS (National Pension Scheme) : NPS is a pension scheme that has been started by the Indian Government to allow the unorganized sector & working professionals to have a pension after retirement. Investments of up to Rs 1.5 Lakhs scan be used to avail tax deductions under Section 80C.
• Can be opened by every Indian citizen between the age of 18 and 60
• Partial withdrawals are allowed after 15 years but under special conditions
• Returns rate on the NPS varies between 12% to 14%
• No limit on maximum contribution
• Employer contributions are tax-free
5. Investments in ULIP's (Unit Linked Insurance Plans) : ULIP's are a mix of insurance & investment. A part of the invested amount in ULIP's is used to provide insurance & the rest of the amount is invested in the stock markets. Investments of up to Rs 1.5 Lakhs in ULIP's are eligible for tax breaks under Section 80C.
• An investor can buy ULIP's for self or spouse or child
• Interest rate varies as it is market linked
• Return rate on the ULIP's varies between 12% to 14%
• No limit on maximum contribution
• Investment and withdrawals & maturity amount are tax-free
6. Investments in Sukanya Samriddhi Yojana : Sukanya Samriddhi Yojana Scheme is one of the most popular schemes by the Government of India. The scheme is aimed at the betterment of girl child in the country.
• Parents/guardians can open an account in the name of a girl child till she attains the age of 10 years
• Up to 50% of the deposit amount can be prematurely withdrawn once the girl reaches the age of 18 years
• Interest rate on Sukanya Samriddhi Yojana is 8.5%
• Investment is limited to maximum Rs.1.5 Lakhs in a financial year
• Investment and withdrawals & maturity amount are tax-free
7. Premium payments towards Life Insurance : Annual premium paid for life insurance in the name of the taxpayer or the taxpayer’s wife and children is an eligible tax-saving payment under Section 80C. Deduction is valid only if the premium is less than 10% of the sum assured.
8. Repayment towards Home Loan : Repayment of the principal of a loan taken to buy or construct a residential property is eligible for tax deductions under Section 80C. This deduction is also applicable on stamp duty, registration fees & transfer expenses.
9. Payments for Children's School/Tuition Fees : Tuition fee paid for the education of two children is eligible for tax deduction under Section 80C of up to Rs 1.5 Lakhs. The fee can be paid to any school, college, university or educational institute situated in India. The fees have to be for a full-time course only.
10. Investment in NSC's (National Savings Certificates) : NSC's are eligible for tax breaks for the financial year in which they are purchased. 
• Investments of up to Rs 1.5 Lakhs can be made to save taxes under Section 80C
• Can be bought from designated post offices & come with a lock-in period of 5 years 
• Interest is compounded annually but is taxable 
• Current interest rate on NSC is 8.0% (FY 18-19)
11. Investment under Senior Citizens Savings Scheme (SCSS) : SCSS is a scheme exclusively for anyone who is over 60 years old or someone over 55 who have opted for retirement. 
• Scheme has a maturity period of 5 years 
• Current interest rate offered gives 8.6% per annum 
• Investments of up to Rs 1.5 Lakhs can be made to save taxes under Section 80C