The clock is ticking, and for many taxpayers, March 31 is more than just another date on the calendar. It is the last chance to take action and reduce this year’s tax outgo. If you have been delaying your tax planning, this is your last window to act. A few quick investments made today could still help cut down your tax bill, but only if you move fast.
Here are five simple investment options that can help investors save money while staying tax compliant.
ELSS MUTUAL FUNDS
Equity Linked Savings Scheme (ELSS) mutual funds remain one of the most popular last-minute tax-saving choices. They offer deductions under Section 80C and come with a lock-in period of just three years, which is the shortest among such options.
What makes ELSS stand out is the ease of investing. The entire process can be completed online within minutes. While returns are market-linked and not guaranteed, they offer the potential for better long-term gains compared to traditional options.
HEALTH INSURANCE
Paying your health insurance premium can also help reduce your tax burden. Under Section 80D, individuals can claim deductions of up to Rs 25,000, while senior citizens can claim up to Rs 50,000.
This benefit covers premiums paid for self, spouse, children and even parents. It is a practical way to combine financial protection with tax savings.
TAX-SAVING FIXED DEPOSITS
For those who prefer certainty, tax-saving FDs are a straightforward option. These qualify for deductions under Section 80C and come with a five-year lock-in period.
Banks offer fixed interest rates, and investments can be made through net banking or by visiting a branch. However, it is important to remember that the interest earned is taxable.
PUBLIC PROVIDENT FUND
Public Provident Fund (PPF) continues to be a trusted option for conservative investors. Backed by the government, it offers stable returns along with tax benefits under Section 80C.
The scheme has a long maturity period of 15 years, making it suitable for long-term goals. Contributions can be made online, making it accessible even on the last day.
NATIONAL PENSION SYSTEM
The National Pension System (NPS) offers an additional edge when it comes to tax savings. Under Section 80CCD(1), contributions up to Rs 1.5 lakh are eligible for deduction.
Beyond this, Section 80CCD(1B) allows an extra deduction of Rs 50,000 exclusively for NPS. There is also a benefit under Section 80CCD(2) for employer contributions.
A quick reminder before you invest
While these options can help reduce your tax liability, they are mainly beneficial under the old tax regime. Also, to claim the deductions for this financial year, investments must be completed before March 31.
With just hours left, the key is to act quickly but wisely, because even a small step today can make a noticeable difference to your tax bill.
