The deadline for making tax saving investments for the current fiscal year is fast-approaching -- it ends March 31, 2024. Factors to consider when picking a tax-saving investment include lock-in periods, conditions for premature withdrawal, taxation on interest earnings. , and maturity amounts, among others. Particularly for individuals in higher income tax brackets, the taxability of investment returns becomes pivotal. Taxable returns are added to your income and subject to higher tax rates.

In the fiscal year 2023-24, salaried individuals have the option to opt for either the old tax regime or the new tax regime. Under the old tax regime, individuals can avail themselves of tax deductions and exemptions, whereas the new tax regime provides lower tax rates but fewer deductions and exemptions. It's crucial for salaried individuals to compare their final tax liabilities under both regimes before making a decision. If the old tax regime proves more beneficial, it's equally important to select the appropriate tax-saving options.

Given below are four tax-saving investment options that help you not only save income tax but also earn returns on which zero tax is payable. Do keep in mind that these tax benefits are available only for those who opt for the old tax regime.

1. Public Provident Fund (PPF)
Under Section 80C, individuals can reduce their taxable income by investing in the Public Provident Fund (PPF). This scheme falls under the "exempt-exempt-exempt" (EEE) category. Essentially, this implies that investors can claim deductions on their invested amount, and they are not liable to pay tax on the interest earned or the maturity amount. Additionally, in terms of safety, the PPF scheme is considered highly secure as it carries a sovereign guarantee..

2. Sukanya Samriddhi Yojana (SSY)
The Sukanya Samriddhi Yojana (SSY) was introduced under the government's "Beti Bachao, Beti Padhao" scheme. This is a deposit scheme for girl children. It allows the parents to invest for the education or marriage of a girl child and at the same time claim income tax benefit. Just like PPF, the Sukanya Samriddhi Yojana account also has EEE tax status. Hence, the amount invested, interest earned and the maturity amount are exempted from tax.

3. Employees Provident Fund (EPF) and Voluntary Provident Fund (VPF)
Salaried individuals enrolled in the Employees' Provident Fund (EPF) system are required to allocate 12% of their salary towards their EPF account, with their employer making a corresponding contribution. The employee's contribution to the EPF is eligible for a deduction under Section 80C of the Income Tax Act. Should an individual wish to make supplementary contributions beyond the mandated 12%, they can choose to contr..

The EPF scheme enjoys an EEE (Exempt-Exempt-Exempt) tax status, subject to specific conditions. However, starting from the financial year 2021-22, if an employee's contributions to EPF and Voluntary Provident Fund (VPF) accounts surpass Rs 2.5 lakh in a fiscal year, the interest earned on the excess amount becomes taxable. Additionally, as of the fiscal year 2020-21, if the employer's combined contributions to EPF, National Pension System (NPS), and superannuation funds exceed Rs 7.5 lakh annual..