So many options, so little time. If you have still not completed your
tax planning for 2016-17, don't panic. ET Wealth has identified the five
best taxsaving options for 2017. We assessed the options on eight key
parameters--returns, safety, flexibility, liquidity, costs,
transparency, ease of investment and taxability of income. Each
parameter was given equal weightage and composite scores were worked out
for the options.
For many investors, ease of investing is paramount as they don't have
much time. Fixed deposits score very high on this front. A few clicks
and your investment is done. Insurance agents also make the process easy
by doing the paperwork. The investor just signs on the dotted line. But
the cost of this ease is high. In the 30% tax bracket, the post-tax
returns from fixed deposits are less than 5%. And traditional life
insurance plans not only offer niggardly returns, but force buyers to
continue till maturity .
