Income to Taxpayers are in a tearing hurry to
make tax-saving investments before 31 March.
Ms. Preeti Kulkarni suggests 5 options you would
not regret.
(1) Invest in ELSS..!
Equity-linked savings scheme (ELSS) funds do not
require recurring payments.You do not have to pay in subsequent years if you
realise that the fund does not suit your needs.
Moreover, you can easily invest online if you are Know your customer (KYC)-compliant. All you need to do is visit websites that track mutual funds.
Identify the fund with the help of ratings given and log on to the selected
fund house's portal to invest. You will have to register on the site by
providing the information asked for and click on the `invest online' link.
Next, select the scheme identified, choose its
direct plan version and pay. The acknowledgement will serve as proof of
investment.
Tax benefit:
Exemptions up to Rs. 1.5 lakh under Section 80C
Taxability on maturity:
Exempt
(2) Buy online Term Policies..!
Term insurance offers a large cover at a minscule
cost. Online term plans are also cheaper than physical term products.
The buying process is simple and requires an
hour.
As the online process does away with the need for
an agent, no part of your premium is directed towards commissions.
Check the insurer's claim settlement record. To
buy, visit the selected life insurer's portal and furnish personal information,
nominee details, income level and so on.
The process is completed with payment of premium,
unless you have to undergo medical tests. The premium receipt will suffice to
claim tax deductions.
Tax benefit..!
Exemptions up to Rs. 1.5 lakh under Section 80C
Taxability on maturity:
Exempt
(3) Secure your health online..!
Many companies & aggregators facilitate
purchase of health insurance policies online.
Cases which do not require pre-policy medical
check-up can be bought online in an hour.
Typically, insurance seekers under 45 without any
adverse health history do not need to go through medical tests.
However, it's best to buy a health cover now to
ensure that the entire process is completed before March 31 as those over 45
will have to wait till the policy is issued post-medical tests.
Tax benefit -
Deductions up to Rs. 15,000 under Section 80D
(Rs. 20,000 for senior citizens)
Taxability on maturity:
NA
(4) Invest in a Tax Saver Fixed Deposits
A popular instrument, it is simple to invest in
one if you are registered for Internet banking. All you have to do is open
a 5 year tax-saver fixed deposit by
transferring funds from your savings account.
The Fixed Deposit (FD) receipt mailed to your account will serve
as proof for claiming tax benefits. However, not all banks allow customers to
open a tax-saver FD online, even though the facility is enabled for regular
FDs.
Tax benefit:
Exemptions up to Rs. 1.5 lakh under Section 80C
Taxability on maturity
Interest earned is taxable
(5) Opt for PPF and NPS..!
Public Provident Fund (PPF) is best-suited for those with a low risk
appetite. You can open a PPF account with online facilities through some banks,
but you will have to submit your application form and KYC proof in person at a
branch.
Subsequently, you can transfer funds online
through your linked savings bank account. From the next financial year (2015-16), National Pension System (NPS) will offer an additional tax break of up to Rs. 50,000.
Opening of the account
still entails cumbersome paperwork and visits to points of presence authorised
by the Pension Funds Regulatory and Development Authority.
Tax benefit..
Exemptions up to Rs. 1.5 lakh under Section 80C
Taxability on maturity...
PPF Exempt; NPS Taxable
From ET Wealth
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