Tax Saving: Tax saving investment is not completed yet, so you can invest here before March 31..
Income Tax Saving Options at the last-minute: If you have not yet fully achieved your tax-saving investment target for the current financial year, then hurry up, because you have only a few days left to save tax. The last date for tax saving investment in the current financial year is March 31, 2023. That is, before that you can save tax by investing in the right options. Let us know what are these right options.
Investing in PPF
The benefit of tax deduction under section 80C is available on the investment made in PPF i.e. Public Provident Fund. Under 80C, tax deduction can be claimed on eligible investments up to a maximum of Rs 1.5 lakh in a year. If you want, you can deposit this much amount in a year by opening a PPF account. PPF is a safe investment with a fixed income, which is currently getting returns of up to 7.1 percent.
life insurance premium
You can also supplement your tax-saving investment by buying a life insurance policy for yourself or a dependent family member. The deduction is available under 80C on the premium paid for life insurance.
National Pension System (NPS)
Under Section 80CCD (1B), a separate tax deduction is available on an annual investment of up to Rs 50 thousand in the National Pension System (NPS). This benefit is in addition to the benefit under 80C on investments up to Rs 1.5 lakh. If you wish, you can take advantage of this additional tax exemption by investing in it till March 31. The rate of return in NPS is influenced by the market. In the long term, it can be expected to get better returns than FD.
5-year tax saving FD
Tax exemption under section 80C is also available on investments up to Rs 1.5 lakh in tax-saving fixed deposits (FDs) with a lock-in period of 5 years. If you have not been able to meet your target of tax-saving investment for this financial year, then you can save tax by putting money in this type of FD. Before investing, get complete information from the bank on whether the FD in which you are investing is eligible for tax savings or not. The rate of return on this type of FD can vary from bank to bank.
Investing in ELSS
Instead of FD, you can also invest in Equity Linked Savings Scheme (ELSS) for tax savings. As it is clear from its name, the money put in it is invested in the market, so the return is not guaranteed. But usually investing in ELSS through SIP gives good returns over a long period. One special thing about tax-saving ELSS is that it has a lock-in period of only 3 years. That is, if needed, you can also withdraw your money after 3 years.
Health insurance policy
A separate tax exemption is available under section 80D on buying health insurance policy ie health insurance. People below 60 years of age get the benefit of a deduction on premiums up to Rs 25,000, but people above 60 years of age get an exemption on premiums up to Rs 50,000. Under this section, you can avail of tax exemption by taking health insurance for yourself and your senior citizen parents.