For tax-saving, you can invest in PPF, SSY, ELSS and NPS by 31 March. If you do not invest in these investment options till March 31, then you will not be able to claim deduction for this financial year. Investors who have invested in these investment options do not have to worry. Experts say that even if you have invested in these investment, you should review it once. The reason for this is that if there is any kind of shortfall in the investment, then it can be invested by 31 March to complete it. It has to be kept in mind that deduction on these investments is allowed only in the Old Regimm of Income Tax.
Deduction on investment of up to 1.5 lakhs under section 80C
The Income Tax Old Regimm is allowed to claim up to Rs 1.5 lakh in a financial year under Section 80C of the Income Tax Act, 1961. About a dozen investment options come under this section. These include PPF, SSY, NPS, ELSS etc. Decision can be claimed by investing in one of these schemes or in more than one scheme. But, it has to be kept in mind that you do it in a scheme or in more than one scheme, you can claim deductions up to Rs 1.5 lakh in a financial year.
Decision on Health Insurance Premium under Section 80D
If you have not purchased health insurance, then you can buy till 31 March. With this, you will be able to claim deduction while filing the income tax return of this financial year on its premium. If you buy health insurance after 31 March, then you will not be able to claim deduction on its premium while filing the return of this financial year. A person can buy a health policy for himself and his family and claim deduction of Rs 25,000 on his premium. If you are over 60 years of age, then you can claim deduction of Rs 50,000. Apart from this, a deduction of Rs 50,000 can also be claimed for buying a separate health policy for elderly parents.
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Keep these things in mind in investment
You have to keep in mind that the purpose of investment should not be just tax-sewings. You have to invest keeping your financial goals in mind. If you can take a little risk then you can invest in the tax scheme of mutual funds. This scheme is also called ELSS. ELSS has the highest returns in tax-casting investment options. It has a three-year lock-in period, which is the lowest lock-in period in tax-savings investment options. If you cannot take the risk, then you can invest in the bank’s tax-sewings FD or PPF. However, it has to be kept in mind that the bank’s tax-savings FD where the lock-in period is 5 years is the same PPF is a long-term investment. It matures after 15 years.