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Save More Tax Before March 31 – 10 Tax Saving Tips in 2023

'Discover 10 lesser-known options to save more tax before the end of the financial year on 31 March. Learn how to maximise your deductions and minimise your tax liability with our expert tips and strategies.'

Overview:

As the end of the financial year approaches, it is vital to consider the best investment options available for 2023. Investing your money can provide you with great returns and valuable tax benefits. A variety of lesser-known investment options can help you save more tax. In this blog, we have discussed some lesser-known investment options, their tax benefits, and the advantages of investing before the deadline. We’ll also explore how to pick the right investment option for you before 31 March. With the right investment strategy, you can maximise your returns and benefit from tax savings.

Some of the Best Investment Options in 2023

Investment is something that has to be done after proper research. There are various investment opportunities in the market, from stocks and bonds to mutual funds and real estate. Before making any decisions, assessing your financial goals, risk tolerance, and timeline is crucial.

10 Lesser Known Investment Options to Save More Tax Before 31 March

As the 31 March deadline approaches, it’s the perfect time to think about ways to save more on your taxes.

Here are ten investment options to consider if you’re looking for lesser-known ways to save before the deadline.

Investment Options to Save More Tax

    1. ELSS Funds Investment
    2. Sukanya Samriddhi Yojana Investment
    3. National Pension System (NPS) Investment
    4. Senior Citizen Savings Scheme (SCSS) Investment
    5. Public Provident Fund (PPF) Investment
    6. National Savings Certificates (NSCs) Investment
    7. Equity-Oriented Mutual Funds Investment
    8. Health Insurance Investment
    9. Home Loan Investment
    10. Invest in Unit-Linked Insurance Plans

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  • Invest in ELSS Funds

ELSS Funds or Equity Linked Savings Scheme Funds are mutual funds with a three-year lock-in period. These funds offer tax exemptions up to ₹1.5 lakhs as per Section 80C of the Income Tax Act.

  • Invest in Sukanya Samriddhi Yojana

This scheme is specially designed for parents of female children. Under this scheme, an eligible parent can save up to ₹1.5 lakhs per year with a maturity period of 21 years.

  • Invest in the National Pension System (NPS)

 NPS is a retirement-focused pension scheme that allows you to contribute up to ₹50,000 a year with a tax deduction of ₹1.5 lakhs under Section 80C

  • Invest in Senior Citizen Savings Scheme (SCSS)

SCSS is a government-backed scheme that allows senior citizens to save up to ₹15 lakhs in a financial year and get a tax deduction of up to ₹1.5 lakhs under Section 80C of the Income Tax Act

  • Invest in Public Provident Fund (PPF)

 PPF is an ideal tax-saving scheme for those who want to save for retirement. You can invest a maximum of ₹1.5 lakhs in a financial year and get a tax deduction of up to ₹1.5 lakhs.

  • Invest in National Savings Certificates (NSCs)

NSCs are issued by the post office and are ideal for those looking for a safe and secure investment with guaranteed returns. You can invest a maximum of ₹1.5 lakhs in a financial year and get a tax deduction for the same.

  • Invest in Equity-Oriented Mutual Funds

 Equity-oriented mutual funds are an excellent option for those who want to invest in the stock markets but need more time or expertise. You can invest a maximum of ₹1.5 lakhs in a financial year and get a tax deduction of up to ₹1.5 lakhs.

  • Invest in Health Insurance

Health insurance plans offer a tax deduction of up to ₹25,000 for individuals and ₹50,000 for families under Section 80D of the Income Tax Act.

  • Invest in Home Loan

 If you are taking a home loan, you can get a tax deduction of up to ₹2 lakhs on the interest paid on the loan under Section 24 of the Income Tax Act.

  • Invest in Unit-Linked Insurance Plans

ULIPs combine insurance and investment. They offer a tax deduction of up to ₹1.5 lakhs under Section 80C. These are just some lesser-known investment options available to save more taxes before the 31 March deadline. So, take your time to research and find out which one is the best for your needs.

How to Pick the Right Investment Option Before 31 March

To put it straight, it’s highly considered to consider your risk appetite. Generally speaking, risk appetite refers to an investor’s readiness to take on financial risk in the hopes of making a prospective reward. It is also essential to keep in mind your long-term financial goals when selecting an investment option. Make sure to consider all the pros and cons of the different investment options and pick the one that provides the best returns while also helping you save on your taxes. 

With the help of financial advisors, you can get advice on the best investment options and ensure you are taking advantage of all the tax benefits available. In addition, the above-discussed lesser-known investment options can help you save more. By understanding the different investment options and picking the right one before the deadline, you can save more on your taxes and ensure that your investment is safe and secure.

Conclusion

Investing in 2023 can be a great way to save more tax before 31 March. There are many options available to you, both well-known and lesser-known, and the right choice could make all the difference in terms of the tax benefits you can receive. It’s essential to take the time to do your research and pick the option that best suits your needs. With a suitable investment, you can be sure to reap the rewards of your hard work in the years to come. ‘Remember to take advantage of the last chance to make smart investment decisions before the financial year ends on 31 March. Trust Vakilsearch to guide you in selecting the right options that match your goals and risk appetite. Maximise your returns and minimise your risks with our expert advice and comprehensive investment services.’

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About the Author

Abhinav Mukundhan, serving as the Research Content Curator, holds a BSc in Bioinformatics, MSc in Data Science, and a PhD in Communication Science. With a strong focus on simplifying complex research, he brings over ten years of experience in scientific communication, data analysis, and creating educational content that aligns with legal and regulatory standards.

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