Meaning
These financial tools enable individuals to reduce their taxable income, leading to tax savings.Definition
Tax Saving Instruments are government-approved investment schemes offering tax deductions or exemptions under the Income Tax Act.Types and Features
Popular options include ELSS (Equity Linked Savings Scheme), PPF (Public Provident Fund), NPS (National Pension System), and tax-saving FDs. They often have a lock-in period, provide returns, and lower your taxable income.Benefits
They help decrease your tax burden, promote disciplined long-term savings, and aid in building wealth.Author
