With the introduction of lockdown from March 25 to prevent infection of coronavirus pandemic, the Government of India had extended the last date for filing of income tax returns to June 30 and provided major relief to taxpayers. Now, there are only 11 days left in this last date. Now, if you want tax exemptions, you will have the last chance to invest somewhere. Today, we are going to tell you about some online tax saving investment options through which income tax exemption can be obtained under section 80C of the Income Tax Act.
Public Provident Fund (PPF):
Income tax exemption can also be obtained by investing in PPF. All major banks like State Bank of India, HDFC Beck, ICICI Bank facilitate their customers to open PPF accounts online. Investors can transfer money from their bank account to the PPF account online. Investors can generate PPF account statements and deposit them as investment proof for tax saving. Investors can invest Rs 500 to Rs 1.5 lakh a year in PPF accounts.
Tax Saving Bank FD:
If you are considering saving tax this last time, you can also invest in tax-saving bank FD. It comes with a lock-in period of five years. The FD is currently offering returns ranging from 5.50 to 6%. The interest income received from this FD is taxable.
National Pension System (NPS):
The NPS Tier-1 account can also be opened online for tax saving. Customers can open NPS accounts through their bank's online banking facility. Your KYC verification will be completed by the bank during the registration process. After the account is opened, investors can invest through internet banking, credit card, or debit card.
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