Be careful while making investment in tax-saving instrumentsThe financial year is coming to close. Nowadays the working people are in a hurry to complete mandatory Rs. 1.5 lakh saving under Section 80C of the IT Act. In this connection, I would like to say that people should be very careful while investing. The following steps are suggested:-
(a) Don't go for a new insurance if you already have insurance policy/policies. Please remember that insurance is not an investment.
(b) If you don't have any insurance policy, go for a term insurance. At the same time, you may take a medical insurance. In this case (medical insurance) you can avail additional tax benefit under Section 80D.
(c) If you have not completed Rs. 1 lakh in GPF, you can invest in GPF for tax saving. It is safe and secure.
(d) You can also consider investing in a good ELSS in accordance with your risk profile. Please go through this thread :Let us learn: What is ELSS?
(e) An investor can also consier investing in NSC for tax-saving.
(f) Last but not the least, an investor can get addition tax benefit of Rs. 50,000/- under Section 80CCE if he/she invests in NPS.
So, please take investment decision in tax-saving instruments wisely. Don't blindly follow the advice of agents. Think about your long-term investment plans and insurance needs before investing.