These amazing options of the old tax regime will save your hard-earned money, most people don't know how!

As soon as the month of May begins, working professionals and taxpayers alike are faced with a clear concern: how to save taxes? 

Every year, at the beginning of the financial year or at the very last minute, people rush to find investment options. This rush results in a lack of proper information, preventing them from utilizing their funds effectively and missing out on the full benefits of tax breaks.

Currently, the government offers the option of two tax regimes: the new and the old. While the new system lowers tax rates, 

it eliminates most deductions and tax exemptions. Therefore, for taxpayers who remain with the old tax regime, Section 80C of the Income Tax Act remains their most powerful tool.

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By investing in the right areas through this section, you can not only reduce the heavy tax burden but also build a strong fund for the future. Let's explore four key investment options that can not only save tax but also grow your capital.

ELSS: Where you get tax exemption and bumper market returns

If you're looking for excellent returns while taking a moderate amount of risk, an Equity Linked Savings Scheme (ELSS) can be an excellent option. Essentially, it's a mutual fund that invests in the stock market. 

The biggest advantage of investing in it is its lock-in period of only three years. If the market performs well, this scheme can be very effective in creating investors' wealth over the long term. This dual benefit of tax savings and capital appreciation makes it a popular choice.

PPF and NSC: A sure formula for guaranteed returns

For those who want to keep their hard-earned money completely safe, away from market fluctuations, the Public Provident Fund (PPF) is a timeless option. This is a highly reliable government scheme, currently offering an interest rate of approximately 7.1 percent. 

Its biggest advantage is that the amount invested and the interest earned on it are completely tax-free. PPF remains a popular choice for long-term financial security.

Similarly, the National Savings Certificate (NSC) is an excellent option for risk-averse investors. This post office scheme has a five-year lock-in period and offers interest at a government-determined rate. Those seeking guaranteed and fixed returns often invest in this scheme.

You will get benefit from Sukanya Samriddhi Yojana

For taxpayers with daughters, the Sukanya Samriddhi Yojana (SSY) is not just a tax-saving tool, but also a vital means of securing their future. 

This government scheme allows investments ranging from just ₹250 to a maximum of ₹1.5 lakh annually. Like PPF, the interest earned and the entire maturity proceeds are exempt from tax.

Know these important rules before investing

When planning your tax, it's crucial to understand one technical aspect. 

Whether you invest your entire corpus in one of the options listed above or spread it across different schemes, the Income Tax Department allows a maximum annual deduction of up to ₹1.5 lakh under Section 80C.