For many young people, managing bills and budgets can leave very little room for savings, but even small investments in tax-free schemes can significantly contribute to building a secure financial future. These investments act as a foundation for a solid tax strategy, offering benefits under the old tax regime with annual investment limits.

1. Section 80C
   Under Section 80C of the Income Tax Act, you can invest in options like the Public Provident Fund (PPF), Employee Provident Fund (EPF), and National Savings Certificate (NSC). The maximum amount you can invest is Rs 1.5 lakh in a year. According to Arnav Pandya, founder of Moneyeduschool, PPF is especially useful for retirement planning, as all deposits made into the PPF account are deductible under this section.

2. Section 80D
   This section allows deductions on health insurance premiums for both individual and family coverage, with a limit of Rs 25,000 per year for individuals. For senior citizens (above 60), this limit increases to Rs 50,000. Pandya emphasizes the importance of life and medical insurance for long-term financial security.

3. Section 80E
   If you've taken an education loan for higher studies, you can deduct the interest paid on the loan under Section 80E. Given the rising costs of education, this scheme is beneficial for those burdened with expensive educational loans.

4. Section 80CCD
   This section encourages early retirement planning by offering additional tax-saving benefits for investments in the National Pension Scheme (NPS). Young investors can take advantage of NPS to start building their retirement corpus while enjoying tax benefits.

5. Home Loan
   Deductions for both principal and interest repayment are available under home loans. While this can be a useful tax-saving option, it’s crucial to remember that a home should be purchased based on need, not solely for tax savings.

Additionally, there are tax-saving mutual funds for investors interested in equity exposure. These schemes not only offer tax benefits but also provide opportunities for higher returns over the long term.