Late Starters you can be Tax Savers – Six online tax-saving investments: Maybe you procrastinated for too long. Dont worry you can still get good saving through smart investments. Perhaps some extra expenses stalled your investment plans. You can still save better by investing in tax saving schemes.
The early bird gets the worm. Thats right. Early investors usually have an excellent corpus due to the benefits of compounding over a long period. Unfortunately, late starters have to compromise on their savings amount as they start out late. However, you can make a good fortune if you invest in tax-saving investments.
Section 80C of the Income-tax Act, 1961.

• This act enables the investors to save taxes on certain investments.
• Investors can get a deduction of taxes for a maximum amount of Rs 1.5 lakh. This is good news for late starters in investment. They can choose the schemes which are compliant with this act and start saving.

The key to stopping delaying your savings investment is to find those which can be processed online. That way you dont have to postpone cheques on rainy days.
Below are the online tax saving investments in India for investors who start in the last minute.

1. 5-year fixed deposit in a bank

• Fixed deposits, till date, are the most convenient way of online investment.
• All you need is a bank account which is KYC compliant.
• Here, section 80c of the income tax act comes into the picture. A fixed deposit of up to Rs.100,000 with a duration of 5 years can be exempted from taxes.
• The process of starting a fixed deposit and maintaining it online is easy.
• You can log into your net banking account and apply from there. You can start with a minimum of Rs.10,000.
• Also, you have the choice of selecting monthly, quarterly or cumulative interest rates. The average interest rate on a five-year fixed deposit is 6 to 6.5%.
• The interests gained on the fixed deposit are taxable. The post-tax returns amount from 4 to 4.5 percent per annum.
• Undoubtedly, fixed deposits are the safest way of an investment.

2. Insurance

• Have you heard about online term plans in insurance Term plans are a type of insurance which can be availed within a fixed term.
• By investing in an online term plan, you can be assured of financial coverage for your family in case of sudden death.
• If the policyholder dies within the term, the nominee will receive a previously confirmed amount. This assured amount can be chosen while applying for the term plan.
• Though there are zillions of insurance plans, this is affordable with its low expenses.
• Under Section 80C and Section 10D of the Income-tax Act, 1961, the policyholders of term plans can avail tax gains.
• Also, the term plans have survival benefits. It means that if the policyholder survives the term, the premium is refunded.
• Choose the right insurance provider and apply for term insurance online.
• The top 10 insurance providers of term plans in India are:

1. LIC
2. Max Life
3. Birla Sunlife
4. Tata AIA Life
5. Start Union Daichi
6. ICICI Prulife
7. PNB MetLife
8. Bajaj Allianz
9. Kotak Mahindra Life
10. HDFC Std

3. ULIP

• Unit-linked insurance plan. An integrated plan where you get both insurance and investment. Does it sound dreamy and like exactly how your investment should be Then ULIPs are there for you.
• While a portion is allotted as an insurance cover for the policy-holder, the rest is invested in equity and debt securities.
• An investor can design ones portfolio based on goal and risk appetite.
• While gaining market-linked returns, the investor also gets life insurance.
• The amount paid as premium for ULIPs is allowed for tax deduction provided that the premium is less than 10% of the sum assured under the scheme. The maximum amount for tax deduction is capped at Rs. 1.5 Lakhs.
• Also, withdrawals in case of below events, tax savings can be obtained:

1. Death of the investor
2. If the policy reaches maturity
3. Partial withdrawal

• To apply for a ULIP online, you can register on the website of any provider and submit the required documents.
• It is advised to check for intricate details while applying online as it might lead to confusions later.
• Below are the firms which provide the best ULIPs in India:

1. Aegon Life ULIP Plans
2. TATA AIA ULIP Plans
3. SBI Life ULIP Plans
4. PNB MetLife ULIP Plans
5. MAX Life ULIP Plans
6. Aviva ULIP Plans
7. Bajaj Allianz ULIP Plans

• Go through the schemes provided and selected the ones which suit your financial goal and risk appetite.

 
3) PPF- Public Provident Fund (India)

• PPFs are an aggregate scheme with the features of savings and investment.
• The National Savings Institute of the Ministry of Finance initiated PPFs in 1968. The purpose of these schemes is to bring out the best of small-sized savings by granting income tax benefits on returns gained.
• An investor can start his PPF account with a minimum investment of Rs.100. The upper cap of the scheme is Rs 1.5 Lacs.
• The interest rate for PPFs at present is 7.6% per annum. The compounded interest rate is paid on 31 March every year.
• The lock-in period for PPF is 15 years and the amount invested can be withdrawn at the end of the term. The total amount, along with the interest amount is exempted from taxes.
• Under Section 80C of the Income-tax Act, 1961, annual contributions to the PPF accounts are eligible for tax exemptions. The maximum limit for tax deduction is Rs 1.5 Lacs.
• Parents or Guardians can open PPFs accounts for minors and manage it for them.
• You can open a PPF account through your Aadhar verified bank account. Log into net banking and link the account details from which the amount can be deducted.
• Even if you are a late-starter, there are other conditions in PPFs where the minimum term can be shortened to 7 years.

4) Repayment of home loans

• When you are paying home loans, add-ons such as interest rate and taxes are a burden.
• The EMI (Equated monthly instalments) are comprised of principal and interest rate. A deduction of taxes can be availed on the principal amount. On a self-occupied property, up to Rs. 2 lakhs can be exempted from paying taxes.
• This is one of the best tax saving investment as you can save a lot of taxes while owning a property.
• Also, instead of investing your surplus money elsewhere, prepayment of a large portion of the loan brings down interest rates.
• Log into net banking and add your home loan account as a third-party account. This way, you can make timely payments with less hustle.

5) Health Insurance

• This insurance is the literal meaning of health is wealth proverb. While securing the health of your loved ones, it is important that you know how to save on taxes.
• Understanding that the age of the person who is medically insured is not above 60, they can avail a deduction of taxes on Rs 25,000 a year.
• The insurance policies made for critical illness also qualify for the tax deductions.
• These tax deductions do not apply to those who pay the premium in cash. Though there is a traditional way of paying through cheques, online banking is quicker, safer and hassle-free.

6) ELSS: Equity-linked savings scheme

• This is one of the most preferred tax-saving investment in 2018.
• This scheme is the combination of two favourite motives of investors, i.e., high returns and fewer taxes.
• Investors invest in equity mutual funds as they are attracted to the high gains. However, the plan goes in vain due to the capital gains tax of 10% applied to these schemes.
• Thus, with a lock-in period of 3 years and tax deduction up to Rs 1.5 lac, these ELSS schemes have turned out to be tax friendly.
• For investors who start late, these can be very beneficial due to the less duration of lock-period and high returns.
• An investor can invest online and opt for SIP (Systematic Investment Plan). By this, the investor can pay amounts as a minimum of Rs. 500 at regular intervals.
• Best ELSS schemes in India are:

It is never too late to mend. Late starters need not worry about fewer returns and in turn small corpus. By investing in these tax-saving investments in India, one can build a good corpus.