Every financial year, as tax season approaches, many of us find ourselves scrambling to invest, not just to grow our money, but also to reduce our taxable income. If you’ve got a lump sum amount ready to invest, there’s good news: several smart one time investment plans in India qualify for deductions under Section 80C of the Income Tax Act.
In this blog, we’ll explore the best tax saving options you can invest in with a one-time payment, helping you save on taxes while securing your future.
What Is Section 80C?
Section 80C allows you to reduce your taxable income by up to ₹1.5 lakh in a financial year through eligible investments and expenses. By choosing the right instruments, you can enjoy:
- Immediate tax savings
- Long-term wealth creation or security
- Peace of mind with guaranteed or market-linked returns
While most people think of SIPs or recurring contributions, many options under 80C allow lump sum or one time investments, making it ideal if you’ve received a bonus, gift, or surplus savings.
Best One Time Investment Plans Under Section 80C
1. Public Provident Fund (PPF)
- Returns: ~7.1% (compounded annually)
- Lock-in: 15 years
- Tax Status: EEE (Exempt-Exempt-Exempt)
- Minimum Investment: ₹500/year
- Maximum Deduction: Up to ₹1.5 lakh under 80C
Why it works: You can invest your entire ₹1.5 lakh in one go every year and enjoy guaranteed, tax-free returns, making it one of the most trusted long-term tax saving options in India.
2. National Savings Certificate (NSC)
- Returns: ~7.7% (as of 2025)
- Lock-in: 5 years
- Minimum Investment: ₹1,000
- Tax Deduction: Principal eligible under 80C
Why it works: Safe, low-risk, and government-backed. You can buy NSCs from any post office with a one-time amount and lock in your tax benefit for the year. Bonus: the interest earned (though taxable) also qualifies for 80C in subsequent years.
3. Tax-Saver Fixed Deposit (5-Year FD)
- Returns: 6%–7.25% (varies by bank)
- Lock-in: 5 years
- Minimum Investment: ₹1,000
- Tax Deduction: Up to ₹1.5 lakh under 80C
Why it works: Perfect for those who want fixed returns and capital safety. While the interest is taxable, the ease of investing and guaranteed returns make it a popular one-time investment for tax planning.
4. Equity Linked Saving Scheme (ELSS)
- Returns: 10%–15% (market-linked)
- Lock-in: 3 years (shortest among 80C options)
- Tax Deduction: Up to ₹1.5 lakh under 80C
- Tax on Returns: LTCG at 10% beyond ₹1 lakh/year
Why it works: ELSS mutual funds offer high return potential and the shortest lock-in among all tax-saving options. You can invest a lump sum and let it grow over the long term, great for young professionals with time on their side.
5. Unit Linked Insurance Plans (ULIPs)
- Returns: 6%–12% (based on market performance)
- Lock-in: 5 years
- Tax Deduction: Premium qualifies under 80C
- Tax on Maturity: Tax-free under Section 10(10D)*
Why it works: ULIPs combine investment + insurance, and single premium ULIP plans are available for those looking to invest one time. Ideal for goal-based planning with tax benefits and life cover.
6. Life Insurance Premium (Single Premium Policies)
- Returns: Varies (depending on type – endowment, term, etc.)
- Lock-in: Varies
- Tax Deduction: Premium up to ₹1.5 lakh under 80C
- Tax on Maturity: Tax-free under Section 10(10D)*
Why it works: Whether you’re buying a term plan or a savings-oriented endowment plan, paying the premium in one go (single premium) allows you to claim a full deduction and secure your family’s financial future.
7. Senior Citizen Savings Scheme (SCSS) (For those aged 60+)
- Returns: ~8.2% (as of 2025)
- Tenure: 5 years (extendable)
- Maximum Investment: ₹30 lakh
- Tax Deduction: Up to ₹1.5 lakh under 80C (principal)
Why it works: Designed for retirees, SCSS offers one of the highest fixed returns and tax savings in one plan. Ideal for pensioners with lump sum funds.
Quick Comparison: Tax-Saving One Time Investment Plans
| One time investment plans | Lock-in | Return Type | Risk | Tax Benefit (80C) | Maturity Tax |
| PPF | 15 yrs | Fixed | Low | Yes | Tax-Free |
| NSC | 5 yrs | Fixed | Low | Yes | Taxable |
| 5-Year FD | 5 yrs | Fixed | Low | Yes | Taxable |
| ELSS | 3 yrs | Market-Linked | High | Yes | LTCG Tax |
| ULIP (Single Premium) | 5 yrs | Market-Linked | Moderate | Yes | Tax-Free* |
| Life Insurance Premium | Varies | Depends on plan | Low | Yes | Tax-Free* |
| SCSS | 5 yrs | Fixed | Low | Yes (Principal) | Taxable |
How to Get Started
- Pick your product based on your goals, safety, growth, or a mix
- Calculate your total 80C usage (don’t forget EPF, tuition fees, home loan principal)
- Invest your lump sum online or offline before the financial year ends
- Keep proof of investment for tax filing
- Track and review annually to ensure it still fits your goals
Final Thoughts
A smartly chosen one time investment plan under Section 80C can do more than just save taxes, it can help you build wealth, create financial discipline, and prepare for the future.
Whether you’re a salaried employee, a retiree, or a new investor, there’s a tax-saving option that matches your needs. The key is to start early in the financial year, invest wisely, and let your money grow, while keeping your tax bill in check.
