Last chance to save tax before March 31!

Tax saving tips: The financial year 2025-26 is at its last stage. The March 31 deadline is around the corner and if you haven’t completed your tax planning yet, you still have a few days left to save your hard-earned money from going to the income tax department. Under Income Tax Act 80C, you can get tax exemption on investments up to ₹ 1.5 lakh. But the question is, which is the best option at the last moment? Here are 5 such great investment options, which will not only save your tax but will also create a big fund for your future.

1. Equity Linked Savings Scheme (ELSS)
If you want to block money for a short period of time and are looking for better returns, then ELSS mutual funds are the best option. Its lock-in period is only 3 years. Investment in this is subject to market risk, but in the long run it has the potential to give average returns of 12% to 15%.

2. Public Provident Fund (PPF)
PPF is still the first choice for those seeking safe investment. At present the government is giving 7.1% annual interest on it. It falls in the ‘EEE’ category, that is, the entire amount received on investment, interest and maturity is tax-free. Its lock-in period is 15 years.

3. National Pension System (NPS)
If you have crossed the 80C limit of ₹1.5 lakh, then NPS can provide you additional relief. In this, you can get extra tax exemption of ₹ 50,000 under Section 80CCD(1B). It gives you exposure to both equity and debt while building a retirement fund.

4. Sukanya Samriddhi Yojana (SSY)
If your daughter is below 10 years of age, then this scheme is a boon for you. Currently, it is getting an attractive interest rate of 8.2%. This scheme helps in creating a large fund for the daughter’s higher education and marriage and the interest earned on it is completely tax-free.

5. Tax Saving FD
For those who do not want to take market risk, 5 year tax saving FD from banks is a simple option. Lump sum investment can be made in this and exemption is available under Section 80C. However, the interest received in this comes under the ambit of tax.

Important tips for last minute

Keep the deadline in mind: Complete the investment process by the evening of 31st March. In case of online payment, do the transaction 2-3 days in advance to avoid the problem of server down.