Looking to save taxes before March 31st? Don’t panic. You still have powerful options to reduce your tax outgo. Check out these smart, last-minute tax-saving investments, specially curated for Indian taxpayers.
Did You Know, A ₹1.5 lakh deposit in Sukanya Samriddhi Yojana can grow over ₹65 lakh in 21 years—completely tax-free!
Why Last-Minute Tax Planning Matters
Every March, taxpayers rush to save taxes. Many end up choosing options without understanding returns or lock-in periods. Smart planning, even now, can help you save while keeping your money secure and growing.
Quick Comparison of Top Options
| Investment Option | Section | Max Deduction Limit | Lock-in Period | Risk Level |
|---|---|---|---|---|
| ELSS Mutual Funds | 80C | ₹1.5 lakh | 3 years | High (Market-linked) |
| Tax-Saving Fixed Deposits | 80C | ₹1.5 lakh | 5 years | Low |
| Public Provident Fund (PPF) | 80C | ₹1.5 lakh | 15 years | Very Low |
| National Pension System (NPS) | 80CCD(1B) | ₹50,000 extra | Till age 60 | Moderate |
| Health Insurance Premium | 80D | ₹25,000 to ₹1 lakh | Renewable Yearly | Very Low |
| Sukanya Samriddhi Yojana (SSY) | 80C | ₹1.5 lakh | 21 years | Very Low |
| Senior Citizen Savings Scheme (SCSS) | 80C | ₹1.5 lakh | 5 years | Very Low |
Best Picks for Late Investors
1. ELSS Mutual Funds: Quick & High-Return
Equity-Linked Savings Schemes (ELSS) provide tax benefits under Section 80C. They come with a short 3-year lock-in. These funds suit investors who are open to stock market risks and want higher returns.
2. NPS: Extra Deduction Advantage
The National Pension System allows an additional ₹50,000 deduction under Section 80CCD(1B). Salaried individuals can benefit even after using the ₹1.5 lakh 80C limit. Returns are market-linked and good for retirement.
3. Sukanya Samriddhi Yojana: Best for Girl Child
SSY is ideal for parents of a girl child. It offers attractive interest rates and tax benefits under Section 80C. Deposits up to ₹1.5 lakh per year qualify, with a long lock-in till the child turns 21.
4. Senior Citizen Savings Scheme: Secure for Seniors
SCSS is perfect for individuals above 60. It offers assured returns and tax benefits under Section 80C. The lock-in is 5 years, extendable by 3 years, making it ideal for retirees seeking safety.
5. Health Insurance: Save Tax & Stay Protected
You can claim deductions up to ₹25,000 under Section 80D. For senior citizens, the limit increases to ₹50,000. It helps you save tax while covering rising healthcare costs.
Quick Action Tips
- Use online portals for faster investments.
- Keep all investment receipts safe for filing.
- Review existing investments to avoid over-investment.
Also read: Check Your EPF Balance In Just 60 Seconds Without HR Help
Conclusion
Tax season may be closing in, but you can still make smart moves. Choose wisely, invest now, and save big!
Disclaimer
The information provided in this article is for general informational purposes only and does not constitute legal, tax, financial, or other professional advice. While every effort is made to ensure the accuracy and reliability of the information, laws and regulations may change, and individual circumstances vary.
Readers are encouraged to consult with qualified professionals or official government resources for personalized guidance regarding their specific situations. The author and publisher disclaim any liability for decisions made or actions taken based on the information provided herein.
