Tax Saving: If you are following the old tax system then you have only a few days left to save tax, as the last date for the end of the current financial year, March 31, 2025 is very near. If you have not completed your tax saving investments yet, then you can complete this work in the next few days.

Section 80C is very effective in saving tax

The most commonly used income tax provision for tax saving is Section 80C. By using this section, you can reduce your taxable income by up to Rs 1.5 lakh. There are many investment options available for this. By investing in these tax saving schemes, you can not only save your tax but can also prepare a strong financial base for the future.

What to do for last minute tax saving?

Last Minute Tax Saving Options include Provident Fund, ELSS, National Savings Certificate (NSC), Tax Saver FD,These include Senior Citizen Savings Scheme (SCSS) and life insurance premium. Apart from these, tax benefits are also available on some expenses under 80C. Let us know the special features of these tax saving options.

EPF, PPF and Superannuation Fund

Investments in Provident Fund and Superannuation Fund up to Rs 1.5 lakh during a financial year provide tax benefits. These include investments made in Employees Provident Fund (EPF) and Public Provident Fund (PPF). It also offers partial withdrawal and loan facility. Being a Triple E (EEE) scheme, the interest received on it is also tax-free.

Equity Linked Savings Scheme (ELSS)

Investment in ELSS scheme of mutual funds is eligible for tax benefits under section 80C. However, it has a lock-in period of 3 years and being linked to the stock market, it carries more risk than other investment options.

National Savings Certificate (NSC)

Investment made in National Savings Certificate (NSC) is also eligible for tax benefits under section 80C. It has a lock-in of 5 years.

Tax Saving Fixed Deposit

Investment made in 5-year Tax Saving Fixed Deposit in any scheduled bank or post office gets tax benefit under section 80C. But the interest received on it is taxable.

SCSS and Sukanya Samriddhi Yojana

Investments made in Senior Citizen Savings Scheme (SCSS) and Sukanya Samriddhi Yojana (SSY) for senior citizens also get tax benefits under section 80C.

Life Insurance Premium

The payment made towards a life insurance policy i.e. life insurance premium is also eligible for tax deduction under section 80C. This deduction is also available on payments made by the taxpayer for himself, his life-partner, children or any member of a Hindu Undivided Family (HUF).

Investment in annuity scheme

Investment in annuity scheme purchased for regular income after retirement also gets tax benefit under section 80C. However, for this, the option of lump sum cash payment in lieu of annuity should not be available in the scheme.

Apart from investments, tax exemption can also be claimed on some expens

Tax exemption is also available on these expenses

es under Section 80C of the Income Tax Act. These expenses also include tuition fees of children in school, college or other educational institutions. This exemption can be availed on the fees of a maximum of two children. Apart from this, if you are repaying a home loan, then only the payment of the principal amount is eligible for tax deduction under section 80C. Apart from this, if you have purchased a new house, then stamp duty and registration fees are also eligible for deduction under this section.