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Worried about last-minute gifts? Try these investment options to save tax
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If you have received any unexpected gift during the year for which you missed tax planning, you can make investments specified in Section 80C of the Income Tax Act. Section 80C allows a deduction of up to Rs 1.5 lakh per financial year. You can invest in a single tax-saving investment or many of them. You may choose to invest in fixed income investment schemes such as Public Provident Fund, National Savings Certificate, or the tax-saver fixed deposit to save taxes under Section 80C.
However, Equity Linked Savings Scheme (ELSS) is one of the best investment options with the lowest, three years of lock-in. It invests primarily in stocks and has the potential to offer inflation-beating returns over time. It has the shortest lock-in period of
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