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?

2 Answers 2


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?

This depends on individual's choice and risk appetite. Generally at younger age, investment in ELSS / PPF is advisable. Other options are Life Insurance, Retirement Plans by Mutual Funds, NSC, etc

  • I have been given advice that there is not to go for Endowment LIC policy. I had Jeevan Ananad. Also paid one premium, but then on advice I closed it. In 25 years, Jeevan Anad can double the amount. But with normal FDs, the amount would have been quadupled at approx rate of 8% in the same period. I have been told that there should be just two insurance policies, one term plan (which gives amount to dependents on death) (also amount receivable on death will be much larger than endowment policy and premium will also be very less in comparison, Q.1 is this correct? ) and one mediclaim policy.
    – Mahesha999
    Commented Mar 1, 2016 at 17:23
  • Q2. Also any comment on initial bulk amount investment in ELSS? I will continue monthly SIP after initial bulk investment but is initial bulk investment very/fundamentally bad idea?
    – Mahesha999
    Commented Mar 1, 2016 at 17:23
  • 1
    @Mahesha999 Right on Endowment policy[also called Whole life]. These are not recommended. Related question money.stackexchange.com/questions/11/… .
    – Dheer
    Commented Mar 2, 2016 at 4:51
  • @Mahesha999 If you are looking at long term, investing in Bulk or SIP does not matter much. SIP just puts more discipline and averages better.
    – Dheer
    Commented Mar 2, 2016 at 4:53

Your question is pretty detailed, you are financially aware; it is actually a huge step towards achieving financial independence.

Indian economy is being embedded into the world economy which means the market sentiment is positive.

People invest in Mutual Funds to earn more than what other financial devices have to offer like FD’s or PPF’s. Your choice of ELSS is accurate.

Don’t Invest in Bulk, Set-up a SIP of the amount you’re planning to invest and let it be deducted on a monthly basis like the EMI’s. You can show the entire amount as an Investment while filing your returns for FY 17-18.

Happy Investing!

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