It is now that time of the year when most corporates take investment proof from their employees. Everyone wants to save maximum tax and because of this, nowadays most of the employees are engaged in collecting these proofs. Tax is calculated based on the information given by the employees and then tax is deducted accordingly.

If you are also a salaried employee and you have not started investing anywhere yet, there are some ways through which you can save tax. Here we are telling you about 5 top tax-saving investments suggested by experts.

Equity-linked tax saving scheme
Equity-linked schemes are quite popular for tax savings. This scheme invests your money in shares, for which it offers different portfolios of shares in front of you. Although these schemes come with a lock-in period of three years, this is the shortest scheme among tax saving options. Mumbai-based mutual fund distributor Abhay Mathure recommends investing in ELSS, mutual fund retirement schemes, and NPS as there is scope for better returns. He says that ELSS funds are better than others because they have less lock-in. According to Value Research, ELSS has given an average return of 14.83 percent in the last three years.

PPF and Sukanya Samriddhi Yojana
These schemes, which provide you with an investment option for the long term, give you a return of 7.1 percent at first and 7.6 percent later. You do not have to pay any tax on the returns received from them. You get returns from these schemes after a long time. The minimum term for PPF is 15 years while Sukanya Samriddhi Yojana goes till the age of 21 years of the daughter. However, investors wishing to create funds for the long term can invest in both of these schemes. At the same time, investors coming in the high-income tax slab can also consider investing in it.

National Pension System (NPS)
NPS can be a better option to build a retirement fund and ensure annuity income in old age. Investment in the National Pension System (NPS) is tax-exempt under section 80C of the Income Tax Act. In this, you can invest 1.5 lahks annually and an additional 50 thousand rupees under section 80CCD (1B). By investing in NPS, you can take advantage of a total exemption of Rs 2 lakh in Income Tax.

Senior Citizen Saving Scheme (SCSS)
This is a scheme that comes with a tenure of five years and can be extended up to three years. At present, 8 percent interest is available on the deposited amount under this scheme. A senior citizen can invest up to Rs 15 lakh in this scheme and can avail of a deduction of up to Rs 1.5 lakh in a year under Section 80C. In this, interest is paid every three months.

National Savings Certificate (NSC) and Tax Saving FD (TFD)
These schemes can be a better option for investors who come from low-income tax slabs and do not want a long-term commitment. The tenure of both these schemes is five years. At present, NSC is offering an interest rate of 7 percent and about 7 to 7.5 percent interest is being given on TFD. Although bank FDs and NSCs offer annual returns, the interest is taxable for investors.