Before you rush to make tax saving investments, find out how the returns and maturity proceeds of the tax saving investments are taxed. Compare them and avoid this common mistake made while investing to save tax.

Edited Highlights
0:52 Your tax saving investments can actually get taxed in other ways

1:21 Investors typically ignore taxation of returns and maturity proceeds of tax saving investments

1:34 Tax treatment of returns and maturity for tax saving investments like life insurance, ELSS or tax saving fixed deposits (FDs) varies

3:13 ELSS is tax free after lock in period while life insurance premium should be less than 10% of sum assured

3:53 If sum insured is Rs 10 lakh, if you are paying premium above Rs 1 lakh, it will not qualify for tax deduction

4:41 In a tax saving FD interest is taxable

4:46 In NPS, taxation of returns depends on equity-oriented or debt-oriented variant

5:03 In Public Provident Fund (PPF), t is tax-free for returns and maturity proceeds

5:16 Interest earned on National Savings Certificate (NSC) is taxable

5:36 NSC interest is re-invested and qualifies for tax deduction under Section 80C