I live in India. I am in 250000-500000 tax slab (10%).
This year I will be paying approx 11000INR tax. So to get it refunded I have to investment of at least approx 100000 INR.
I was wondering what best tax saving option I should go for, to get it refunded when I fill my ITR.
- I have to get this investment done before March end so that it can be eligible in tax exemption of this year.
- I am stuck with my PPF as you can know from my this question on money.stackexchange
- Should go for investing in Equity Linked Saving schemes? However if I have to do investment in ELSS, then I have to put bulk say 50000INR in this. However it is usually discouraged to invest in bulk in ELSS. But again currently the stock market is a lot discounted. And mostly ELSS NAVs must be down comparatively a year ago (if I would have done monthly SIP in ELSS for the whole year). So can bulk investment in ELSS be justified?
- Should I go for tax saving fixed deposits? (given that the FD interest rates have considerably reduced, it might be discourageable)
I was thinking to do mix of ELSS and Tax Saving FDs. But is my choice correct? Also what other options I am left with?