Key Takeaway: ELSS gives highest returns (12-15%) with shortest lock-in (3 years). PPF is safest with complete tax exemption.
Section 80C Overview
Section 80C allows deductions up to ₹1,50,000 from taxable income. At 30% bracket, this saves up to ₹46,800 in taxes.
Top Options Compared
• ELSS: 12-15% returns, 3-year lock-in, high risk • PPF: 7.1% returns, 15-year lock-in, zero risk, fully tax-free • NPS: 8-12% returns, till 60, medium risk • Tax FD: 6-7% returns, 5-year lock-in, zero risk • EPF: 8.15% returns, till retirement
Recommended Portfolio
Under 35: ELSS ₹1L + PPF ₹50K 35-50: ELSS ₹75K + PPF ₹50K + NPS ₹50K (extra) 50+: PPF ₹1L + Tax FD ₹50K