Leif Mizer 
The tax saving season starts on April 1, and now is the time to start planning your investments. Investing early in the year in a tax saving investment plan will give you enough time to consider your investments and plan them out, giving you the best chance of reaping the highest possible returns. There are a few important factors to consider when choosing a tax saving investment plan.
First, you must determine your goals and your risk tolerance. Once you have these, you can then consider how much money you’re willing to risk. You’ll want to consider capital gains and losses when building your portfolio, and consider whether or not to choose a tax-deferred account. This will allow you to keep the money you invest and pay taxes only on withdrawals in the future. You can also reduce your taxes by donating appreciated stocks to charity or by funding a 529 plan for your child’s college education. It’s also important to learn the tax implications of any employer stock plans that you participate in.
Investing in a tax-saving mutual fund can help you get tax benefits while still earning a good return. You can contribute a lump sum of money or invest on a monthly basis. The flexibility of mutual funds is a great benefit to most investors. If you have a high risk tolerance, you can choose a mutual fund that invests in stocks and other assets.
Another tax saving investment is the Public Provident Fund. These long-term investments provide moderate interest rates and a guaranteed maturity. They also allow partial withdrawals after a five-year lock-in period. The best thing about PPF is that the interest you earn is tax-deductible. That means you won’t have to worry about losing money as you invest.
ULIPs are popular tax saving investment vehicles that allow investors to save taxes in the long term. The returns of ULIPs depend on the performance of the mutual funds. However, they’re generally safe instruments and can qualify you for a tax deduction up to Rs. 1.5 lakhs in some cases. Tax saver FDs are also a good choice for long-term tax saving investments. They offer the flexibility to switch between equity and debt funds and can also help you save taxes in Section 80C and 10(10D).
The Sukanya Samriddhi Yojana is one of the most important tax saving schemes launched by the government of India. It was launched as part of the Beti Bachao Beti Padhao campaign. This scheme allows individuals to invest a fixed amount every month and earn interest. It also has the lowest lock-in period of all the tax saving instruments.
There are many types of tax saving investments available to individual investors, with each offering a unique set of benefits and tax benefits. In fact, tax saving investment is one of the easiest ways to save tax. A bank FD is the easiest way to invest, and you can use your Net-banking login to invest in the scheme. ELSS is another popular tax saving investment. ELSS investments can be made through a mutual funds website, but be sure to ensure that KYC compliance is adhered to. There is still plenty of time to complete tax-saving investments for FY 2021-22.
