Best Tax Saving Plans FD Vs PPF Which Is Better Investment Deadline 31st March

Best Tax Saving Plans: The financial year 2022-23 is about to end now. As soon as this month ends in March, the new financial year will start. Along with this, the exercise of saving income tax has also started intensifying. Although the taxpayer should invest in advance, but if you have not done so yet, you still have time till March 31.

Multiple options to save tax

If you invest in tax-saving schemes by March 31, you can claim the deducted amount while filing income tax return. Many tax saving facilities have been given under the Income Tax Act. You can save maximum tax by carefully considering all the options. However, today we are going to talk about such people who have not yet invested for tax saving.

FD better or PPF?

The deadline for investing to save tax is March 31. Have you also not invested till now and want to save tax at the last moment, but do not understand where to invest in 80C to save tax? Which options are better? Can’t decide whether you should go for Fixed Deposit or PPF would be better? So let us see which one of these tax saving options is better than the other?

PPF is better for long term

You can invest in 5 years tax saving FD through bank or post office. It is getting a return of up to 7 percent. At the same time, 7.1 percent annual return is being received in PPF. However, it has a lock-in period of 15 years. That is, PPF can be right in terms of long term, but if you do not want to lock your money for a long time, then this option is not right for you.

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low return on FD

Now comparing these two, the return in FD is a bit less. Along with this, the interest earned also has to pay tax on that income. On the other hand, the returns in PPF are high and it is also completely tax-free. Overall, we can say that PPF is a better option for long term investors, while tax saving FD is better for short term investors.