Last chance to save tax for FY 2025-26: These 5 investments can quickly cut your tax – check the easiest options – Money News

With only a few weeks left for the financial year 2025-26 to end, many people suddenly remember that they still have to invest to save tax. If you haven’t yet invested under Section 80C, March is the last chance. Fortunately, there are some investment options that can be made online and instantly, allowing you to take advantage of tax savings under the old tax regime in time.

Under Section 80C of the Income Tax Act, a tax exemption of up to Rs 1.5 lakh is available. However, this investment must be made before March 31st.

Below are five investment options that people often choose at the last minute in March.

1. ELSS Mutual Funds: Online and the fastest investment option

Equity Linked Savings Scheme (ELSS) mutual funds are a very popular option for tax savings.

Investments in this scheme offer tax benefits under Section 80C.

The lock-in period is only 3 years.

Investments can be made completely online and instantly.

There is a potential for better returns than equity markets in the long term.

If time is short, ELSS is considered the fastest and easiest option.

2. Public Provident Fund (PPF): Safe and Government Scheme

Public Provident Fund is a safe and long-term investment option.

It also offers tax benefits under Section 80C.

The interest rate is fixed by the government.

The maturity period is 15 years.

Deposits can be made through online banking.

This option is good for those who want low risk and guaranteed returns.

3. Tax-Saving Fixed Deposits

Tax-Saving Fixed Deposits are also tax-saving options under Section 80C.

Minimum 5-year lock-in

Banks offer fixed interest rates

Investments can be made through bank net banking or branch banking.

However, the interest earned is taxable.

4. National Pension System (NPS): Additional Tax Benefits

The National Pension System is an investment option designed for retirement.

Up to 1.5 lakh rupees exemption under Section 80C

Additionally, an additional 50,000 rupees exemption under Section 80CCD(1B)

Online investment possible

This gives you the opportunity to save up to 2 lakh rupees in total tax.

5. Life Insurance Premium

If you have taken out life insurance, its premium can also be claimed for tax exemption under Section 80C.

Term plans or traditional insurance plans are included.

Premium payments can be made online.

It offers both security and tax savings.

Which is the fastest investment?

If you need to save tax before March 31st, experts generally consider ELSS mutual funds to be the fastest option.

Because investment can be done online in a few minutes, and they have the shortest lock-in (3 years) and offer potential for better returns in the long term

Summing up…

The opportunity to save tax doesn’t end even in March. If you invest in ELSS, PPF, tax-saving FDs, NPS, or insurance premiums in time, you can avail of a tax exemption of up to Rs 1.5 lakh under Section 80C.

However, keep in mind that this exemption is primarily available under the old tax system, and investments must be made before March 31st.