Save Your Tax with Wise Investment Choices

Most of us tend to spend a lot of time in planning our finances and investments and at the end think about tax savings. When so much emphasis is laid on finding the right investment options then why not look out for investments that can be tax saving too. Some of the most promising tax saving options are discussed below. ELKS investments: Equity linked Investments or ELKS are dependent upon the performance of the equities these hold. If the performance is good, during the payout returns would be distributed accordingly. In case the returns are marginal, there is an assured percentage of return that the investors are promised. As per Section 80C a person can claim a considerable amount of exemptions in taxes by investing in ELKS and ULIPs. These tax savings mutual funds are ideal for people who want to diversify their investments. Medical Insurance: Your mediclaim can make you eligible for tax savings of up to Rs15,000. This applies to medical insurance of you, your spouse, children and even parents. In a way you are making arrangements to tackle medical emergencies which in turn are also helping you save taxes. PPF: Public provident funds are amongst the oldest and most trusted form of tax saving funds. This scheme is government run and comes with some attractive interest options. People investing their money in PPF are sure to get good returns and would not be eligible to pay any tax on the interest amount earned. A PPF account enables individuals to keep adding their funds at any point of time in their account (with a minimum and maximum yearly limit specified). This has to be done for a period of 15 years after which the account holder is entitled to receive the matured amount. This in a way acts as a fixed deposit account without the condition of paying the entire amount once. Fixed deposits: Almost every person thinks about fixed deposits when it comes to investments and these too can help you reduce your tax amount. These are the safest and no-risk involved tax saving tools. Individuals wanting to multiply their money keeping in mind tax exemptions can opt for any of the above mentioned investments. Fixed deposits, PPFs and insurance are good opportunities for people who wish to take a safe route. On the other side there are people who do not find the fixed interest returns luring and they wish to go a step ahead. There are certainly no limits for them too as mutual funds, ULIPs and ELKS have expanded. The best part of choosing these is that the government has made provisions for tax exemptions in such investments. Tax saver mutual funds especially have been successful in attracting investors. Some investments are safe while some are subjected to market risks, if selected smartly they can help investors save substantial amount of taxes.