Last Minute Income Tax Saving Option If you have not taken any measures till now to save tax, then today we are going to tell you some such investments in the last minute by which tax can be saved.
Income Tax Saving Option:Â As the date of depositing income tax is getting closer, taxpayers are trying to find new ways to save it. Investment is a good option for this. If investments are made with the right planning at the beginning of the financial year itself, it helps the taxpayer a lot in saving tax at the end of the year, but if you haven’t made any investments till now, don’t worry . Today we are going to tell you some such tips, by which you can save your tax money even at the last moment.
How to save tax money
To save money on income tax, a deduction of up to 1.5 lakh can be claimed under section 80C of the Income Tax Act. For this, medical insurance, term insurance and Equity Linked Savings Schemes (ELSS) are considered to be the best investments in the last minute. At the same time, investments like Employees’ Provident Fund, life insurance premium, home loan principal repayment can also be considered. Given below are some ideas for last minute investment.
Public Provident Fund
General Provident Fund is also suitable for long term planning with a short savings investment horizon. This is a government backed scheme and they are completely risk free as well as provide guaranteed returns to the investors.
ELSS and NPS
It is always advisable to invest in equity linked savings schemes through Systematic Investment Plan (SIP). Equity Linked Savings Schemes ( ELSS ) is a good solution for this. It comes with a lock-in period of three years and is subject to market risks. People who contribute to the National Pension System (NPS) are entitled to a deduction under Section 80CCD of the Income Tax Act.
Fixed Deposit (FD)
If you want to save tax immediately, go to the bank and make FD . This is a popular option and an individual gets tax exemption under section 80C for investing in FDs. Its tenure is of 5 years.
Insurance plan
Tax deduction is also available by investing in health insurance . Buy medical insurance of one lakh with section 80D deduction limit. In this, take the option of Rs 50,000 for self and family and Rs 50,000 for senior citizen parents.
