Opted for old tax regime? NPS to Bank FD. Explore the last-minute income tax saving options for taxpayers

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Employees' Provident Fund, life insurance premiums, tuition fees, home loan principal repayments, etc., as these qualify for deductions of up to ₹1.5 lakh under Section 80C. Income tax allows exemption and deduction of certain investments made during the year. As the financial year 2023-24 is about to end, individual taxpayers need to make investments before March to claim the benefit in the Income Tax Return (ITR).

“When time is limited, tasks may appear daunting, but there's still a way forward. Evaluate your existing tax-saving expenses that come under 80C, such as insurance premiums, children’s tuition fees, EPF contributions, and home loan repayment. Subtract this total from ₹1.5 lakh to determine the remaining amount to be invested for tax-saving purposes u/s 80C," said Abhishek Soni, CEO and Co-founder of Tax2win.

People opting for the old tax regime can invest in LIC/PPF/ Fixed deposit/Tax saver mutual fund etc. in case the limit of 1,50,000/- is not exhausted u/s 80C, said Hitesh Jain, Associate Partner, Direct Taxes, N.A. Shah Associates.

ELSS funds, PPF, NPS, and fixed deposits are some of the popular options under section 80C. Abhishek Soni said that if your existing expenses cover the entire ₹1.5 lakh limit u/s 80C, you don't need to invest additional funds for tax savings u/s 80C. But if you are still pending with the limit, use investments that fall under Section 80C/80CCC/80CCD.