Tax Saving Tips: One last opportunity before you to save income tax before the 31 March 2020 deadline. You can adopt these online tools to save your income tax. This will not only save you a good amount of money but will also be crucial for you towards fulfilling your financial goals. According to Zee Business Tax Expert Raj Chawla, you can save income tax by doing a Fixed Deposit (FD) or Public Provident Fund (PPF) in the bank. You can also buy an Equity Linked Savings Scheme (ELSS) or an insurance policy or through interest payment of home loans.k
Online ways to save income tax
— Bank Fixed Deposit (5 years)
— Insurance Policy
— Home Loan payment
Bank FD (5 years) – the easiest way to save tax. You can invest in FD by applying online. Remember that your PAN number should be updated in your bank account. Buying an FD is possible through net banking. The amount after maturity will directly go into your bank.
ELSS – This is another instrument where you can make investments by applying online. You can visit the websites of fund houses and make investments. Your account should be KYC updated. Investments can be made during market hours. Investments made before 3 pm will give Net Asset Value (NAV) of that day.
Insurance Policy – You can buy insurance policies by directly visiting the service provider’s website. You can even buy health insurance online. However, in some cases, you may require to give a medical test. Payments could be made through your debit/credit cards or via net banking.
PPF – Open a PPF account by logging in to your net banking account. You are required to fill an online form to buy a PPF. If you already have a PPF account then you can transfer funds into your account through the linked bank account. The PPF allows a tax rebate up to Rs 1.5 lakh investment.
Home Loan repayment – You can make repayments of your home loan via online option. Link your home loan account with your bank account. Income tax rebate on home loan repayment under Section 80C of the Income Tax Act.