1.) Bank Fixed Deposit
The easiest way to make online tax saving investments is to do FD online for a tenure of up to 5 years. If you have complete KYC process in your account and you are internet banking user then you can easily make online tax saving bank fixed deposit for up to 5 years. For this, you have to log in to the net banking account, here you have to keep in mind that the option of auto renewal is not selected. By doing this the FD will be automatically renewed after a period of 5 years. But if you want this facility then you can select it.
2.) Term Life Insurance
One can buy term life insurance online or Unit Linked Insurance online. However, this will not work like a last minute investment because here you have to give some medical tests which you will have to schedule in advance.
If you want to take advantage of tax saving through Public Provident Fund (PPF) account, then you should open the account soon. However, to open this account, you can fill the online form, after which you have to take its printout to the bank. The form can be easily filled through login in net banking. Now you have to take its print out to the bank along with some special documents. But if you are already an EPFO account holder, then you can easily transfer funds online.
4.) Home Loan Repayment/ Prepayment
If you have taken a home loan, then you get 2 types of tax benefits. Tax exemption under Section 80C of the Income Tax Act 1961 can be availed on the repayment of the principal amount of the home loan. Apart from this, under section 24, tax deduction of up to Rs 2 lakh is included on the interest paid on the loan.
Equity-linked savings scheme (ELSS) Mutual funds come with the shortest lock-in period of three years among other options like PPF, EPF, tax saving FD etc. Online investment can be done by visiting the fund house website or aggregator portal. However, make sure you are KYC compliant.