There are many platforms available in the market for availing tax benefits but trending and best one most of the people recommend is short term benefits. Also, there are many options for short term benefits. Lets us discuss them:
Fixed Deposit: Trending, safe and secure platform for investment also we can consider FD in short term investment. Their many benefits of fixed deposits are there and one of them is tax benefits. The best part of a fixed deposit is a higher interest rate. Most housing finance companies offer highest fd interest rates. You can withdraw your FD after a locking period of 3 months in an emergency without any hassle.
- Tax Benefits: Many lenders offer tax saving FD in which you can save tax up to 1.5 Lac every year. Housing finance offers TDS benefits of up to Rs 5000 and a higher FD interest rate which will give you more money at the time of maturity.
- Liquidity: A fixed deposit is liquid. You can withdraw your money at any time by paying some penalties to the bank or NBFCs but you cannot claim a tax deduction at that time.
Life Insurance Policy: Most of the life insurance policies offer tax benefits under section 80c and with this, they also offer life cover of certain amounts. The post-tax returns from life insurance are lower as compared to the fixed deposit.
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