Tax free investments in India | Fusion - WeRIndia

Tax free investments in India

Tax free investments in India

Finding a good investment is not easy these days. Since interest rates have decreased, it has become hard to get good returns on investments. Having to pay tax on most of these returns reduces the profit even more. Here are some investments which give tax free returns.

Sukanya Samriddhi Account

This is a scheme launched for the sake of girl children. It is meant to encourage more girl children. The interest generated by this account is tax free. One can avail tax benefits under Sec 80C of the income tax act for a sum of up to Rs 1.5 lakh. The account has an Interest rate at 8.7 per cent making it a great investment.

SBI Life – Saral Maha Anand


SBI Life – Saral Maha Anand also offers tax free income. This insurance plan is a unit linked one which gives you tax benefits. The insurance plan works by someone paying a premium on death. The premium paid will be returned 10 times. All of this return is tax free. The plan offers both insurance and tax free returns.

PPF

This is one of the most popular and common investment plans. PPF also gives tax free incomes. This tax free interest is given at a return interest rate of 8.1 per cent. You can avail tax benefits under Sec 80C of the Income Tax Act. Note that an interest rate of 8.1 per cent interest is not being offered in any government bank in India at present.

REC Tax Free Bonds

These bonds are a great and safe investment. They give returns at an interest rate of 8.37 per cent. Your invested bonds are traded on the NSE.

NHAI Tax Free Bonds

These are also great tax free bonds. They are listed on the BSE. One can buy the NHAI 2 series tax free bonds come for Rs 1235. They have an interest rate of 8.3 per cent.

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