As we are standing in the last quarter of the FY 2011-12, last minute tax planning is the call of the day. Taxpayers under stress during this time of the year, end up investing in instruments that does not meet their financial goals.

We have listed down few tax investment options which can be under-taken to reduce your tax burden :

Investments u/s 80C:

Investment in Equity Linked Savings Schemes (ELSS), LIC in the name of self, spouse or children, Fixed Deposit for 5 years or more, Time Deposit with Post Office for 5 years or more or the most popular tax saving tools is investing in a Public Provident fund (PPF) account is advisable, if you are not availing full benefit of deduction of Rs.100000 under this section.

Pension Plan (80CCC & 80CCD):

Investment in any annuity plan of LIC or in any pension scheme of Central government has been encouraged, especially for risk averse investors. Moreover it is highly beneficial for salaried employees as employers contribution to the pension scheme is not counted for computing the overall limit of Rs.100000.

Medical Premium (80D):

Take medical or health insurance premium for self, spouse or children and claim deductions up to Rs 15,000. In addition to this, additional deduction of Rs.15000 (20000 in case of senior citizen) can be claimed if medical insurance premium is paid for dependant parents.

Infrastructure Bonds (80CCF):

Claim additional deduction upto Rs. 20000 by investing in long term infrastructure bonds. Companies like Industrial Finance Corporation of India, Infrastructure Development Finance Company and other RBI classified infrastructure finance companies have been authorized to issue such bonds and presently various bonds issues are also open.

Separately, please note that the last date to file Tax Return for FY 2010-11 without penalty is 31st march 2012. Moreover dues in respect of advance tax should be cleared within the due date (15^th March).

Taxmantra.com provides full fledged comprehensive tax planning service wherein we suggest the best investment and tax saving plans, which would minimize your total tax on income.