Budget 2025 And Income Tax: 10 Best Tax-Saving Investment Options For Women

Over the years, women's participation in investment assets has grown, highlighting they are increasingly taking a keen interest in managing their finances. In a range of investment options available in India, many provide tax benefits, which is a key metric for many investors to consider while zeroing in on assets to invest in. While some of them are general options available for both men and women, some are specifically available for the latter. Here are the key investment options women can consider to save taxes.

Sukanya Samriddhi Yojana, an investment option that encourages parents to invest for their daughter's education and marriage, comes under the exempt-exempt-exempt category of income tax. This implies that the investor doesn't have to pay taxes at any stage—whether investment, earnings or withdrawals. Section 10 (11A) of the Income Tax Act, 1961, offers the exemption. The amount invested towards the scheme is eligible for a deduction under Section 80C, with the cap being Rs 1.5 lakh.

Section 80C of the Income Tax Act provides an opportunity to claim a deduction for the investment made towards the National Savings Certificate. The maximum limit for deduction claim is Rs 1.5 lakh. The scheme, available at post offices, currently offers a fixed return of 7.7%, with a minimum deposit of Rs 1,000. The interest rate on the scheme is reviewed periodically.

With a minimum deposit of Rs 500 and maximum contribution of Rs 1.5 lakh annually, Public Provident Fund stands as a good investment option for those looking to save taxes at attractive return rates. The current interest set by the Ministry of Finance on PPF is 7.10% annually, as of the third quarter of financial year 2025. The tax benefit can be claimed under Section 80C with the interest on the investment being tax-free. The tenure under the investment is 15 years, with an option to extend the same in blocks of a total of five years.

Insurance doesn't just protect one from unexpected events but also offers a tax-saving option. Women investors can also claim tax benefits on life insurance policies. Deductions can be claimed for policies for self and family, including spouse and child, though the deduction cannot be claimed beyond 10% of the total sum insured. The cap is at 15% of the total sum for a person with specific diseases under Section 80U of the Act. Premiums towards health insurance for self and family including spouse, children, as well as parents, is eligible for deduction.

Section 80C of the Income Tax Act provides tax benefit for equity-linked savings schemes. As the returns under the investment are market-linked, this option comes with high risk. ELSS has a three-year lock-in period and is suitable for only those women who have a high-risk appetite.

Investments made to EPF can also bring tax benefits under Section 80C. While, employees' contributions offer deductions under the Section, those from employers are tax-free.

Over and above the Rs 1.5 lakh deduction available under Section 80C, a further deduction for investment up to Rs 50,000 in NPS is offered to NPS subscribers under subsection 80CCD (1B).

Fixed deposits with banks or post offices with a minimum lock-in period of five years offer tax deductions under Section 80C. The limit for tax deductions is Rs 1.5 lakh annually, while the income earned is taxable.

Amount paid towards the principal of your home loan offers the benefit of tax deductions under Section 80C. The maximum housing loan tax exemption is Rs 1.5 lakh a year. Up to Rs 2 lakh tax benefit is available under Section 24(b) for interest paid on a home loan.

Investments made to SCSS are also deductible under Section 80C for tax savings.