It’s March 30, and that means you have only one day left in the financial year. If you’re reading this article, chances are that you’ve been naughty with your tax-planning and have left it for the last minute. You’re wondering if there’s a way for you to ensure some last-minute tax savings.
Don’t worry – here’s some help at hand.
Here’s a list of tax-saving investment options under Section 80C under which you’re allowed to claim up to Rs 1.5 lakh as deductions.
There’s just enough time left for you to dash to your nearest bank branch or post office to secure these investments. There are pros and cons to each of these investment options, and they’re all long-term investment options. Since you don’t have a lot of time left to evaluate them, the table below would help you understand what you’re getting into.
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If you’re not the kind who wants to queue up at the bank branch or post office, you may want to end your tax-saving process by simply buying a five-year fixed deposit or an ELSS mutual fund.
Last but not the least, don’t put yourself in this position next year. Start your investing and tax-planning from April and save yourself the last-minute stress.
|What To Buy||How much||Where||Benefits||You need||Processing time||We suggest|
|National Savings Certificate||Rs. 100 upwards||Through authorised banks, post offices||Safe investment, 8% ETE returns, 5-year lock-in||Investor’s name, cash or DD.||1 working day||Recommended for long-term investment|
|PPF||Rs. 500 to Rs. 1.5 lakh||Through authorised banks, post offices||Safe investment, 8% EEE returns, loan on investment facility, 15-year maturity||ID & address proof, 2 colour photographs, account opening form (for offline application)||1 working day||Best saving scheme for the general investor, great tool for long-term wealth building.|
|ELSS||Rs. 500 upwards||AMCs, distributors, agents||Market-linked and tax-free returns, 3-year lock-in||KYC documents, cheque, PAN card||1 working day||Great for long-term wealth creation; can be bought easily online.|
|Life Insurance||Depends on coverage, age||Insurers, agents, online aggregators||Life cover with investment benefit||KYC documents, cheque, photograph. For some term plans, income proof and health check||1 day to 1-2 weeks||Go online to compare and buy a cover as per your needs. Pick a term plan if you have dependents.|
|5 Year Fixed Deposit||Rs. 200 upwards||Through banks, post offices||Safe investment, 6.6%-7.5% returns||KYC documents, PAN card, cash or cheque,||1 working day||Low returns currently along with poor tax efficiency. Use minimally, buy online.|
(The writer is CEO, BankBazaar.com)