Save More on Taxes: Last Minute Essential Moves to Make Before March 31 Deadline

The last date to make tax-saving investments for the financial year 2024-25  is March 31, and there are just 10 days remaining.

As per the finance ministry data, 72% of taxpayers shifted to the new tax regime in the financial year 2024. This number is likely to increase further this year because of the changes announced in the previous Budget. With additional benefits expected in Budget 2025, even more taxpayers may choose the new regime. Some taxpayers still prefer the old tax regime as they find it more beneficial.

Some of the most popular methods of tax savings under Section 80C, to which deductions up to Rs.1.5 lakh can be claimed, are Equity-Linked Savings Schemes (ELSS), Sukanya Samriddhi Accounts (SSA), life insurance policies, Public Provident Fund (PPF), the Employees’ Provident Fund (EPF), and investment in five-year term deposit schemes of banks.

Choose a financial plan that supports your long-term goals, not just one that helps you save taxes for now. Here is a complete list of investments you can make to get a tax deduction under Section 80C of the Income Tax Act.

Provident Fund and Superannuation Fund: Most People often claim tax deductions for the money they contribute to central or recognized Provident Funds (PF) or approved superannuation funds.

Pension Plans: You can invest in a government-notified pension scheme for a minimum period of 3 years.

Equity Linked Saving Scheme (ELSS): Investing in an ELSS mutual fund can help you get a tax deduction. However, it has a 3-year lock-in period and is riskier than other tax-saving options because its returns depend on the stock market.

National Saving Certificate (NSC): Investments made in the National Savings Certificate (NSC) are eligible for tax deductions under Section 80C.

5-year Tax Saver Fixed Deposite: You can invest in tax-saver fixed deposits at any scheduled bank or open a time deposit at the post office. Just remember, the minimum lock-in period is 5 years.

Senior Citizens Saving Scheme (SCSS): Investments in the Senior Citizens Saving Scheme (SCSS) and Sukanya Samriddhi Yojana are eligible for tax deductions under this section.

Life Insurance Premium: Under this section, you can claim tax exemption for life insurance premiums or deferred annuity plans’ contributions, paid by yourself, your spouse, children, or any Hindu Undivided Family (HUF) member.

Which expenses can you deduct under Section 80C?

Expenses made during the financial year or planned ones can help reduce taxable income by claiming deductions under this section.

Children’s Tuition Fee: You can claim a tax benefit on the tuition fees paid for up to 2 children studying in any school, college, university, or other educational institution in India

Principal Repayment of Housing Loan: You can get a tax deduction on the principal amount you repay for your home loan. Plus, if you have recently bought a home, you can also claim a deduction for the money spent on stamp duty and registration.