Many who have ignored tax planning all year long will now be panicking and looking for quick-fix tax-saving solutions. Let’s say you’re adequately insured. You have life and health insurance. You’re not feeling strongly either about small savings schemes like PPF, NSC and KVP. You’d rather find an option from the comfort of your couch. We’ll discuss two of such options that investors turn to because of the ease with which investments can be done online. These are the tax-saving fixed deposits and equity-linked savings scheme (ELSS).
Overview
Both tax-saving deposits and ELSS funds are long-term investment options with lock-in periods. Both allow you to claim tax deductions up to Rs 1.5 lakh, though you can invest a higher amount.