The last quarter of the financial year is underway and just a few weeks left to make tax saving investment before the March 31 deadline. If your finances have room left for further tax saving, it’s time to act. Take a look at last-minute tax savers you can make the most of until tax-filing season rolls up.
One of the most effective tax-saving instruments, ELSSs are long-term mutual funds that can fetch you high returns over the long term. You can park up to Rs.1.5 lakh in ELSS and can claim it under Section 80C of the Income Tax Act. The lock-in period of 3 years for ELSS is the lowest of all 80C tax savers. As per recent tax revisions, you now have to pay 10% LTCG taz on gains over Rs.1 lakh, but anything under this is tax-exempt. You can invest in an ELSS plan either through a one-time lump sum or via a systematic investment plan. You can invest for these online by registering with your preferred fund house and via distributors.
FDs are one of the most hassle-free investment options, and if you’re pressed for time, go for this option. Apart from offering you the benefit of tax deductions up to Rs.1.5 lakh on your investment, a 5-years FD allows you to earn a higher rate as a senior citizen. Keep in mind that your earnings as taxed as per your income and issuers levy TDS, however, if your income falls below the minimum you can avoid taxes by filing 15G or 15H. As per the revisions of the last budget, as a senior citizen, your earnings up to Rs.50,000 are exempt from tax.
The above-mentioned tax savers are easy last-minute solutions as you can invest in them online, using your PAN card for verification. Use them to sail through the March 2019 deadline, and get started for next year’s tax planning a little earlier!
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