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  • Kenko Desk

Last Call for Tax Savings: Quick Investment Options

A stitch in time saves nine. But an investment in time can save you taxes. Invest in the nick of time before you realise it's too late.



The end of the financial year is upon us, and if you haven't yet taken advantage of tax-saving investment options, now is the time to act. Investing in tax-saving instruments not only reduces your tax liability but also helps you grow your wealth in the long run.


Let’s explore some of the quick investment options that can help you save taxes the legal way while fetching profits at the end of the tenure.


Equity-Linked Saving Schemes (ELSS)


ELSS is a type of mutual fund that invests primarily in equities and offers tax benefits under Section 80C of the Income Tax Act. Since ELSS is a market-linked investment, the returns depend on the underlying investments' performance. ELSS has a lock-in period of three years, which means that the investor cannot withdraw the funds before the completion of this period.


ELSS funds have the potential to offer higher returns than traditional tax-saving instruments like PPF and fixed deposits but are also a tad bit riskier.

Public Provident Fund (PPF)


PPF is a popular tax-saving investment option offering a fixed return rate and tax benefits. The interest earned and the amount invested in PPF are both tax-free, making it an attractive option for many investors. The maximum amount that can be invested in PPF in a financial year is Rs 1.5 lakh.


National Pension System (NPS)


NPS is a retirement-oriented investment option that offers tax benefits under Sections 80C and 80CCD of the Income Tax Act. NPS is also a market-linked investment, which means that the returns depend on the underlying investments' performance. The maximum amount that can be invested in NPS in a financial year is Rs 2 lakh.


Tax-Saving Fixed Deposits


Tax-saving fixed deposits are fixed deposits that offer tax benefits under Section 80C of the Income Tax Act. The interest earned on tax-saving fixed deposits is taxable, but the principal amount invested is eligible for tax benefits. The lock-in period for tax-saving fixed deposits is five years.



Rent payments


If you are a salaried individual who receives HRA (House Rent Allowance) from your employer, you can claim deductions on the rent paid for your accommodation under Section 80GG of the Income Tax Act, 1961. The maximum deduction amount is ₹60,000 per year.


These are some of the quick investment options that can help you save on taxes. It is important to note that while tax saving is an important consideration, it should not be the only factor in choosing an investment option. It is essential to consider factors like risk, return, liquidity, and investment horizon before making any investment decision.


Already made your tax-saving investments? Why not invest in your family’s health? Consider subscribing to the Kenko Family Plan starting at just ₹999 a month. The plan helps you save a ton of money by making all your medical bills ZERO! Invest the saved money to save taxes or take a vacation with it.

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