Tax saving investment schemes that can be subscribed online, check now

Tax saving investment: When it comes to subscribing to a tax-saving investment plan or insurance policy, most taxpayers plan ahead of time. However, due to a busy work schedule or other factors, they may be unable to purchase a tax-saving instrument in time, resulting in a higher taxable income. Because the fiscal year ends on March 31, taxpayers have only one day to obtain an investment scheme or policy. So, even if they are pressed for time, they can choose from a variety of tax-saving investment that can be subscribed online.

As a result, the government now gives taxpayers two options for calculating their tax liability. Deductions and various exemptions are no longer available under the new tax regime, which includes more slabs and lower tax rates. On the other hand, under various sections of the Income Tax Act, the old regime provides you with various investment options to save taxes. If you plan to keep the old tax system but haven’t decided which financial products to invest in to reduce your tax bill for the year, you might want to look into these online options to save time on paperwork.

Tax saving investment schemes that can be subscribed online

Tax-saving bank fixed deposit

The five-year tax-saving fixed deposit is the most hassle-free online tax-saving investment (FD). All you need is a bank account that complies with Know-Your-Customer (KYC) regulations and access to Internet banking. Then you can invest in a five-year tax-saving bank fixed deposit with ease.

All you have to do is log into your online banking account and start investing. If you enable the auto-renewal option while making an investment (unless you want it to), your tax-saving bank FD will be auto-renewed for the next five years on the day of maturity. In the case of a tax-saving FD, premature withdrawal is not permitted once the investment has been completed. If you don’t select the auto-renewal option, the maturity proceeds will be deposited directly into your bank account.

Read Also: Save Tax : 20 Ways to save Income tax in India

Term life insurance policy

A term insurance policy or a unit-linked insurance plan (Ulip) can be purchased online. However, purchasing term life insurance online at the last minute may not be possible because you may be required to undergo medical tests or the underwriter may require additional information before issuing you a policy.

The issuance date will determine your tax benefit for FY 2021-22. You will not be eligible for the tax benefit for FY 2021-22 if the issuance date is after March 31, 2022.

Read Also: LIC under Income tax – Deduction, taxability & TDS on Maturity

Equity Linked Savings Scheme (ELSS)

Investing in ELSS can be difficult because the units must be assigned to your name by March 31. You can go to the fund house’s website, but you should get clarification on the allotment from them before investing. The investment must be made before the deadline, and units will be assigned once the fund is received by the fund house.

Read Also: ITR: Avoid these 5 mistakes while saving Income Tax

PPF and NPS

If you already have a PPF and an NPS account, make sure you’re investing before the NPS deadline. Transferring funds into a PPF account can be done online for those who have an online PPF account with a bank, and the receipt can be used for tax benefits.

Read Also: NPS Scheme: High Return, Income Tax Savings, Top 5 Benefits

Home loan repayment/prepayment

There are two types of tax benefits available if you have an active home loan. The principal amount repaid of the home loan is eligible for a tax deduction under section 80C of the Income Tax Act of 1961. Furthermore, the interest paid on the loan is eligible for a tax deduction of up to Rs 2 lakh.

Read Also: 5 Home Loan tax benefits u/s 24, 80C, 80EE, 80EEA of Income Tax Act

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