Tax-Saving Investments Before FY26 Ends: Options Compared
Why in the news
Near the close of FY26, many old tax regime taxpayers hurry to save tax. Experts caution that deduction-driven, last-minute picks can hurt long-term stability and liquidity.
Planning tips
- Check that the old regime truly benefits you.
- Avoid locking too much cash in low-liquidity products.
- Match choices to short, medium and retirement goals.
Key instruments
| Instrument | Main features | Suited to |
|---|---|---|
| EPF / VPF | Joint contributions, optional top-up, 80C benefit, safe but low liquidity | Conservative investors |
| PPF | Government-backed; 15-year lock-in; 7.1%; EEE | Conservative long-term savers |
| ELSS | 80C deduction; equity growth; 36-month lock-in; SIP route | Investors tolerating volatility |
| NPS | Equity and debt; 80CCD(1B) deduction; part must be annuitised | Disciplined retirement savers |
Other options
- Under 80C: tax-saving FDs (five-year), SCSS, Sukanya Samriddhi Yojana, life insurance, home loan principal, tuition fees.
- Also 80D (health insurance), 80G (donations), HRA exemption.
Exam angle
- EEE: Exempt-Exempt-Exempt.
- Lock-ins: PPF 15 years, ELSS 36 months.