Written by : Knowledge Centre Team
2025-08-02
3601 Views
12 minutes read
Share
While some things in life are inevitable, paying more tax than necessary doesn’t have to be one of them - especially if you make smart, timely investment choices. If you would also like to reduce your tax burden legally, you should work with the following tax-saving plans as much as possible.
What are EEE, EET, ETT Investments?
There are three types of tax-saving investments based on which transactions are tax-exempt. Every investment has the following three types of transactions:
- Initial investment
- Accrued or paid-out interest
- Maturity value
EEE stands for triple exemptions, where all the three transactions above are ‘exempt’ from tax. EET investment will have the first two transactions exempt, while the maturity value will be taxable. Similarly, ETT investments have only the first transaction as exempt. Thus, EEE investments are the most tax-efficient in the market. Fortunately, we have several of them available for investment.
Maximize Your Tax Savings - Talk to an Expert
Enter OTP
An OTP has been sent to your mobile number
Didn’t receive OTP?
Application Status
Name
Date of Birth
Plan Name
Status
Unclaimed Amount of the Policyholder as on
Name of the policy holder
Policy Holder NamePolicy No.
Policy NumberAddress of the Policyholder as per records
AddressUnclaimed Amount
Unclaimed Amount
Sorry ! No records Found
Request Registered
Thank You for submitting the response, will get back with you.
1. Unit Linked Insurance Plans (ULIPs)
Unit linked insurance plans or ULIPs are the best tax-saving investment option in the market, due to the following reasons (apart from EEE status):
- Multiple fund options ranging from high-risk equity growth funds to safe liquid funds
- Create your very own managed portfolio with multiple asset allocation strategies
- Switch between funds; i.e. high-risk to safe funds and vice versa any number of times without a tax liability
- Goal security with premium protection option. ULIPs such as which offers to protect your premium investments in case of your early demise.
- Wealth boosters add to portfolio growth for long-term investors
ULIPs like enable unprecedented safety for your financial goal. Once you have set the ULIP on the course towards your goal it can ensure that your family will meet those goals even if you are not there to see to it.
Also, ULIPs can offer one of the longest investment tenures and least bothersome portfolio management. You can set your investment strategies as per your risk appetite in the beginning and automate the investments. The ULIP will manage your portfolio according to the strategy and safeguard your returns as you approach maturity.
2. New Pension Scheme – NPS
National Pension Scheme is one of the best retirement savings plan available in India. NPS Tier-I account offers great investment options along with tax benefits for employees and self-employed professionals.
The best part of NPS is, perhaps, the additional tax-saving opportunity of up to ₹ 50,000 under section 80CCD (1B). Thus, an NPS account can help you reduce your taxable income by up to ₹ 2 lakh in a financial year.
The only drawback of NPS is the long lock-in period for withdrawal. The account is specifically made for retirement and only opens for full withdrawal once you attain the 60 years of age.
Withdrawal is tax-exempt provided you convert 40% of the corpus into a pension. You can withdraw only 60% of the maturity value in a lump sum without increasing your tax liability.
3. Guaranteed Savings Plans
Guaranteed savings plans are another tax-efficient investment plan from the life insurance companies. These plans are similar to ULIPs for tax-exemption. That is maturity value is tax-exempt so far as your annual premium is less than 10% of the policy sum assured. The premiums up to ₹ 1.5 lakhs reduce your tax liability under Section 80C.
However, unlike ULIPs, guaranteed savings plans do not offer multiple fund options to investors. Instead, these plans offer a safe and fixed minimum return on the invested amount, apart from the life cover. Guaranteed savings plans are the best option for those financial goals, where you need to build a specific corpus without fail.
Also learn about - Fixed Income Investments options
4. Public Provident Fund – PPF
Public Provident Fund is another popular long term saving option. The initial purpose of this investment was to help the self-employed and unorganised sector employees. However, it’s debt-market linked rate of return and EEE tax status have made it a popular investment option for long-term financial goals as well.
You need to invest money in PPF for at least 15 years, although the plan does allow partial withdrawal after 5 years. The only drawback of the PPF investment is perhaps the maximum amount you can invest in one financial year.
Maximum investment per financial year in an individual PPF account is limited to ₹ 1.5 lakhs. Also, the maximum limit is not counted based on the account but on the individual's earning . So, even though you can open PPF accounts in the name of your spouse and children you cannot deposit more than ₹ 1.5 lakh in total.
That is unless your spouse is also earning, filing a separate income tax return and operating her PPF account.
5. Equity Linked Savings Scheme – ELSS
ELSS has been a popular tax saving scheme for aggressive investors. ELSS schemes are a tax-saving fund from the Indian mutual fund houses and are passively managed equity fund.
Passively managed means they maintain their portfolio as per a benchmark index, and do not actively trade in stocks. ELSS schemes have a strict lock-in period of 36 months. The lock-in period applies to every deposit you make in the same account separately.
For example, if you deposited ₹ 50,000 on 10th January 2016, you can withdraw the allocated units on this day after 9th January 2019. When you deposit another ₹ 50,000 in the same fund and account, on 18th March 2019, you can only sell these units after 17th March 2022.
ELSS funds are pure equity investments and if you want to move your earnings to a safer investment you need to wait for 36 months. After the lock-in period on the units is over you can sell the eligible units and invest the funds into a safer investment.
Also read - What is Net Present Value?
Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.
Recent Blogs
What Is Tax Liability? Meaning, Calculation & Examples
05 Mar '26
1994 Views
7 minute read
Tax liability is the total tax payable after deductions and exemptions. Learn its meaning, how to calculate tax liability and how it affects ITR filing in India with examples for individuals.
Read More
Tax Saving
FATCA Declaration: Meaning, Eligibility & Filing Guide
25 Feb '26
67 Views
6 minute read
Understand FATCA declaration requirements, who must submit it, reporting rules for foreign financial assets, and why compliance is important for Indian taxpayers.
Read More
Tax Saving
Income Tax Rates in India: Latest Slabs & Comparison Guide
25 Feb '26
78 Views
6 minute read
Explore current income tax rates under old and new regimes, slab-wise comparisons, and practical tips to select the most suitable tax regime for your income profile.
Read More
Tax Saving
Short Term Capital Gains Tax & Calculation | STCG Tax India
23 Feb '26
10714 Views
11 minute read
Understand short term capital gains tax in India. Know how STCG is taxed, rates, and calculation for different assets under current tax rules.
Read More
Tax Saving
What Is TAN? How to Apply for TAN in India
23 Feb '26
1958 Views
10 minute read
What is TAN? Understand its structure, importance, and how to apply for a Tax Deduction and Collection Account Number (TAN) easily in 2026.
Read More
Tax Saving
What is EPF Form 10C? Meaning, Benefits, Eligibility
23 Feb '26
1412 Views
6 minute read
Learn about EPF Form 10C. Its meaning, benefits, and eligibility. Find out how submit form 10C online and how can help you with your Employee Provident Fund.
Read More
Tax Saving
Import Tax in India: Why Imports Are Heavily Taxed?
23 Feb '26
1970 Views
6 minute read
Understand why imports are heavily taxed in India, how import tax works, and the economic and policy reasons behind high import duties.
Read More
Tax Saving
Expenditure Tax in India: Meaning, Applicability & Examples
23 Feb '26
114 Views
6 minute read
Understand the concept of expenditure tax in India, when it applies, sectors affected, calculation approach, and practical examples to clarify its financial implications.
Read More
Tax Saving
TDS on Foreign Remittances: Rates, Limits & Rules Explained
23 Feb '26
37 Views
7 minute read
Learn how TDS applies to foreign remittances under LRS, applicable rates, thresholds, exemptions, and how these deductions affect your overseas payments and tax filing.
Read More
Tax Saving
Tax Savings - Top Selling Plans
We bring you a collection of popular Canara HSBC life insurance plans. Forget the dusty brochures and endless offline visits! Dive into the features of our top-selling online insurance plans and buy the one that meets your goals and requirements. You and your wallet will be thankful in the future as we brighten up your financial future with these plans.
Family Shield: Enhanced Protection
iSelect Smart360 Term Plan
- 3 Plan options
- Life cover till 99 years
- Steady income benefit
- Block your premium at inception
Fixed Returns, Zero Risks & Worries
iSelect Guaranteed Future Plus
- 4 Plan options
- Life cover + Guaranteed benefits
- Accidental death benefit
- Premium protection cover
Start Young, Pay Less, Stay Secured
Young Term Plan
- Life cover till 99 years
- Coverage for spouse
- Block your premium rate
- Covers 40 critical illness
Popular Searches
- Tax Planning
- Income Tax Calculator
- TDS Vs TCS
- Section 80C
- What Is ITR
- Tax Concepts
- Section 80D
- Section 24
- 80DDB
- What is MAT?
- ITR-3 Form
- Term Insurance Tax Benefit
- TDS for Professional Fees
- Income Tax Slab FY 2025-26
- HRA Calculator
- TDS on Rent
- What is Income Tax Return?
- Income Tax for NRI
- How to File Income Tax?
- Section 80C Tax Benefits
- Old vs New Tax Regime
- LTCG Tax on Investments
- Tax Saving Options for Salaried
- Income Tax Rebate under 87A