Income Tax exemption: Financial instruments you can still invest into before Mar 31 deadline

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save their income tax for fiscal 2023-24. There is no denying the fact that most investment options, particularly the ones in equity have already become unfeasible from the lens of tax saving. This means even if you buy an equity-oriented scheme such as ELSS, you will be issued the units only next week (i.e., next financial year) since the financial markets are closed before Monday.

So, what are the investment options investors are now left with? There are a few which can still be explored such as PPF and National Savings Certificate (NSC). “There are a few investment options where you get instantaneous receipt such as tax-saving FD and PPF. Since the entire process is online, you can buy the units while sitting at home in the weekend," says Ravi Saraogi, co-founder of Samasthiti Advisors.

ALSO READ: Rushing to invest in tax-saving instruments? Here's why it may not be a good idea “When you invest in a PPF or tax-saving FD, you are issued the receipt , which does not happen in case of mutual fund. So, these are considered go-to options for the last minute investment," says Sridhaaran S., a Sebi-registered investment advisor and founder of Wealth Ladder Direct. Tax saving fixed deposits: You can open a tax-saving fixed deposit with your bank.

It is vital to note that these FDs have a five-year lock in period. Although interest earned on these deposits are taxable, the investment made in these instrument is tax free. Public provident fund (PPF): It is a long-term investment option that gives 7.1 percent interest on investment.

One can invest anywhere between ₹500 to ₹1.5 lakh in a financial year. “Investing in a PPF is very simple and one can invest via net banking and one gets the acknowledgement instantaneously. So, when