An individual can claim a deduction of up to Rs. 1.5 lakhs from taxable income when he/she invests in certain schemes/investment products and saves a sizeable tax outflow. Under Section 80C of the Income Tax Act, there are further subsections as below:
Return and Risk Profile of above tax saving options
FD Historical Interest Rates- Tenure 3-5 Years
https://www.rbi.org.in/scripts/PublicationsView.aspx?id=20469
Overall, there is no best tax saving instrument as decision of choosing one depends on an individual’s financial condition, objectives and constraints. Please consult your financial advisor for investment related decisions.
