Time to take stock of tax saving options

A word of caution: One should not go blindly with the investment options, but always consult a qualified financial expert who can suggest proper asset mix to suit your future financial needs and overall goals before taking an investment decision

Time has come to look at tax saving investments, as the financial year 2015-16 is fast coming to a close. I am sure, most of us, as usual, neglect the investment opportunities till the time we receive Form 16 from our office, and by then, the time is over.

Due to the delay, some of us make some tax saving investments, but fail creating wealth in the long run. In fact, it is possible to generate wealth over a longer period, and also save on tax. For instance, one can save up to Rs 1.50 lakh under Sec 80C of I-T Act and you can look for investing in very simple options, but for a longer period, thus you can create wealth.

Although, the popular investment options look very traditional; they benefit individuals enormously over a period of time and provide the opportunity to invest in the same instrument on a periodical basis.

They are:
Public Provident Fund (PPF)
Bank Deposits (five years)
Life Insurance Policy
Equity Linked Savings Scheme (ELSS)
Besides, you can also save tax by taking medical insurance of up to Rs 30,000 (senior citizen) for the fiscal 2015-16.
There is the Rajiv Gandhi Equity Savings Scheme, which enables one to claim tax benefit under RGESS, Section 80CCG, which is 50 per cent of the investment amount (capped at Rs 50,000), over and above 80C limit.
One can also invest in infrastructure bonds to avail tax benefit up to Rs 20,000 under Section 80CCF of IT Act. Generally, we go by 80C for tax exemption at the time of investment, but it also needs to be seen during accumulation and maturity.
Hence, it is always advised to plan investment ahead of time after gathering full information about the instruments and maturity amount.