Tax saving before 31 March: what still helps?
Draft: not yet reviewed by a CA.
Tax-saving investments help only under the old regime, so check your regime first. If the old regime suits you, the main options before 31 March are 80C investments up to ₹1,50,000, health insurance under 80D and NPS. Under the new regime, these investments do not reduce your tax at all.
Should you invest to save tax at all?
Only if you will file under the old regime. Under the new regime, 80C and 80D give no benefit. Run the income tax calculator first, because buying a policy you do not otherwise want, for a deduction you cannot use, loses money.
What counts under the old regime?
- 80C, up to ₹1,50,000: PF, PPF, ELSS funds, life insurance, and home loan principal.
- 80D: health insurance for you and family, up to ₹25,000 or ₹50,000 if you are 60 or above. Parents have a separate limit.
- NPS: a separate deduction is available on your own contributions.
The payment must be made by 31 March to count for that year. Leave a few days for bank transfers.
What should you check before you buy?
Check how long your money is locked in, what it earns after charges, and whether you would want the product anyway. A deduction saves only your tax rate on the amount, not the whole amount.
When is it worth asking an expert?
If you have rent, a home loan and business or foreign income together, the choice gets harder. An expert can check both regimes with your real figures.
Estimate for planning, not tax advice.