Last-minute tax planning? Here's where you should invest

It's that time of the year when many of us who have opted for the old tax regime will be scrambling to find investments that can lower our tax bill. With so many investment choices out there in the market, picking the right one can be overwhelming. Often, the last-minute rush to save on taxes before the March 31 deadline means that many choose investments that simply qualify for a tax deduction under Section 80C without putting too much thought. But that's the wrong strategy. Choosing where to invest shouldn't just be about saving taxes. They should be a good investment first and a tax-saving option later. That's because we'll be investing up to Rs 1.5 lakh, which is a significant amount. So, without wasting more time, let's show you an effective way to determine which tax-saving investments are tailored to your needs based on the following three factors: Time horizon of the investment Risk appetite Liquidity (How easy it is to withdraw the money) Why ELSS ELSS (tax-saving mutual fund) i

This article was originally published on February 27, 2024.