With the current financial year nearing its close, it’s time to take stock of your tax-saving investments. In case you opt for the old tax regime, you can claim deductions of up to ₹1.5 lakh in a financial year under Section 80C. There are other sections also to help you reduce your tax outgo. Do your tax planning activity at the beginning of the financial year to avoid last-minute hiccups. But in case you are late, there’s still time to invest and save taxes. A look at the options available for last-minute investors.
Section 80C: The Most Popular
You can avail a deduction of up to ₹1.50 lakh in a financial year under Section 80C of the Income-Tax Act. A number of options are available but choose the one that suits your risk profile the best. Think long-term and do not take decisions on an ad-hoc basis.
Tax-saving mutual funds: Most financial planners swear by tax-saving mutual funds, or ELSS. An ELSS is an open-ended equity-linked scheme with a statutory lock-in period of three years and tax benefits. ELSS funds have the shortest lock-in period among tax-saving options available under Section 80C. “In the tax-saving space, ELSS is one of the preferred investment vehicles as it has one of the lowest lock-in periods and offers the maximum potential for returns. For the long-term, equity is the most-suited investment option as volatility is reduced substantially. Given the growth environment around us, it is preferable to remain invested in equities,” says Raghvendra Nath, Managing Director, Ladderup Wealth Management.
This story is from the March 07, 2021 edition of Business Today.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the March 07, 2021 edition of Business Today.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Picking Up The Paytm Pieces
Paytm Founder Vijay Shekhar Sharma Is Back In The Trenches After Rbi's Recent Action Left Him Without A Banking Platform. There Are Still Some Opportunities, But He Will Have To Move Swiftly To Grab Them
PMS Vs MF The Big Fight
How do mutual funds and portfolio management services match up? Know the score on structure, rules, entry fees, charges, and tax perks to pick the right path for your financial journey
Four Levers Of Enterprise AI Strategy
Wide-scale private sector AI deployment and new AI-based business opportunities and ecosystems can truly supercharge the Indian economy
"Don't let a unique chance slip by"
JEFF MAGGIONCALDA | CHIEF EXECUTIVE OFFICER | COURSERA
THE INCOMING DISRUPTION
The disruption in the industrial sector is still unknown, but inevitable. Companies need to wake up
THE WHEEL WHISPERER
For Manan Shah, Managing Director of MICL Group, luxury cars are not about showcasing one's wealth or status. It is about personal well-being
TRIPPING WITH TECH
A road trip is an adventure like no other. While you take in the experience, get some peace of mind with these nifty gadgets
Transforming Spaces
WHETHER YOU WANT TO REDECORATE YOUR BEDROOM OR HALLWAY, A GORGEOUS WALLPAPER ADDS FLAIR TO YOUR HOME AND ALLOWS YOU TO STAMP YOUR STYLE IN YOUR NEW ABODE
ALPHATALE
MONEY MANAGERS TO THE AFFLUENT DELIVERED ROBUST RETURNS TO INVESTORS IN THE PAST YEAR, THANKS TO THE BUOYANCY IN THE MARKETS. BUSINESS TODAY DECODES THEIR STRATEGY
"THE ALTERNATIVES SPACE CAN GROW 3X IN FIVE YEARS"
Vikaas M. Sachdeva, MD of Sundaram Alternates, talks about where India's alternative investment industry is headed