Paying taxes is often a headache for some people. However, it is highly necessary to pay taxes as not paying taxes is a certified crime. The topic can be introduced by saying that tax savings are another option that people can avail. One should have a proper tax planning in order to save taxes.
Proper tax planning will reduce tax liability and will also help the saver to reach goals that he or she has set in their lives. Thus, it is very important to plan for one’s financial properties. In order to know more, scroll down and read about the three last-minute tax saving schemes that people can avail today.
1- Investing in equity-linked saving schemes (ELSS)
The best part about ELSS is that it does not require recurring payments. One need not pay in subsequent years if they realise that the funds are not suiting their likings. Moreover, they can surely invest online if they have done their KYC with their banks. All they need to do is visit websites and track online mutual funds. They can use the ratings to identify the funds and log in to various portals for investments. They would also need to register on the site and provide the information asked for and click on the ‘invest online’ link.
2- Buying online term policies
It is to be noted here that term insurances usually offer a large cover at a very cost-effective rate. The online terms are much cheaper over the physical term products. The buying process is fairly simple and no amount of premium money goes towards any kind of commission. Before doing anything, one may check the insurer’s claim settlement policies. In order to buy, one may have to visit the life insurer’s portal and do the furnishing of personal information. The nominee details and the income level will also have to get discussed in the term policies. The process is fairly simple and gets completed with the payment of premium.
3- Investing in tax saver deposits
If the customer is registered to online banking then, investing in tax saver deposit is a popular instrument. All that the customer needs is to invest in a five-year tax-saving fixed deposit. It can be done by transferring funds from the customer’s savings account. The FD receipt can work as a proof for claiming tax benefits. However, it is worth mentioning that not all banks will allow the customer to open a tax saving fixed deposit online. The noteworthy fact remains that tax saving in the last minute is not very difficult. One may just have to contact the banks and do a little research online.
In order to conclude the topic, it can be said that tax saving in the last minute is something that a lot of people opt for. There are many ways by which one can do so. Those having a low-risk appetite can easily avail various options for saving taxes. If one has taken a home loan then they are entitled to claim a reduction of the repayment of the principal amount. Interest payment for a home loan and the education loan will also enable the customer for a tax deduction even in the last minute.
Like it has been mentioned above that those who are registered to online banking can save taxes by investing in tax saving deposits. This is a great practice and it only requires one to have online banking.