ITR: Last-Minute Tax-Saving Investment Options That You Can Consider

As the financial year draws to a close, taxpayers are looking to maximise their deductions for income tax return filing. While early planning is always advisable, there are still several last-minute investment options that can help reduce taxable income under various sections of the Income Tax Act.

Here’s a look at some ways to optimise your tax planning before the deadline.

The NPS is a dual-purpose investment that ensures retirement security while offering tax deductions. Contributions qualify for tax benefits of up to Rs 1.5 lakh under Section 80C and an additional Rs 50,000 under Section 80CCD (1B). This makes NPS an ideal option for those looking to build a retirement corpus while reducing their tax burden.

ELSS funds offer deductions of up to Rs 1.5 lakh under Section 80C. They have a relatively short lock-in period of three years and the potential for high returns due to equity exposure. As such, ELSS is an attractive choice for investors looking for both tax benefits and long-term financial growth. The minimum investment starts at just Rs 500, making it accessible for all income groups.

ULIPs combine life insurance with investment opportunities and come with a five-year lock-in period. The premiums paid for ULIPs are eligible for deductions under Section 80C, and the maturity proceeds are tax-free, provided certain conditions are met.

PPF remains a reliable option for people seeking a risk-free investment with guaranteed returns. Contributions made towards a PPF account qualify for tax deductions under Section 80C. Both the interest earned and the maturity proceeds are tax-free. With a lock-in period of 15 years, it is best suited for long-term financial planning.

Made specifically for senior citizens, SCSS offers an interest rate of 8.2% per annum. Investments up to Rs 30 lakh qualify for tax deductions under Section 80C, making it a good option for retirees looking to secure their financial future while benefiting from tax savings.

Traditional investors looking for stability can opt for tax-saver fixed deposits, which come with a five-year lock-in period. These deposits provide tax deductions of up to Rs 1.5 lakh under Section 80C. While the interest earned is taxable, the safety and guaranteed returns make them a preferred option for risk-averse individuals.

For parents planning their daughter’s future, SSY offers a tax-efficient savings scheme with benefits under Section 80C. Accounts can be opened for girls under the age of 10 and the returns earned are completely tax-free, making it a good choice for long-term financial security.