5 best ways to save tax at the last minute

Invest in ELSS

Equity-linked savings scheme ( ELSS) funds do not require recurring payments. You do not have to pay in subsequent years if you realise that the fund does not suit your needs. Moreover, you can easily invest online if you are KYC-compliant.

All you need to do is visit websites that track mutual funds. Identify the fund with the help of ratings given and log on to the selected fund house's portal to invest.

You will have to register on the site by providing the information asked for and click on the 'invest online' link. Next, select the scheme identified, choose its direct plan version and pay. The acknowledgement will serve as proof of investment.

Tax benefit: Exemptions up to Rs 1.5 lakh under Section 80C

Taxability on maturity: Exempt



Buy online term policies

Term insurance offers a large cover at a minuscule cost. Online term plans are also cheaper than physical term products. The buying process is simple and requires an hour. As the online process does away with the need for an agent, no part of your premium is directed towards commissions.

Check the insurer's claim settlement record. To buy, visit the selected life insurer's portal and furnish personal information, nominee details, income level and so on. The process is completed with payment of premium, unless you have to undergo medical tests. The premium receipt will suffice to claim tax deductions.

Tax benefit: Exemptions up to Rs 1.5 lakh under Section 80C

Taxability on maturity: Exempt



Secure your health online

Several companies and aggregators facilitate purchase of health insurance policies online. Cases which do not require pre-policy medical check-up can be bought online in an hour. Typically, insuranceseekers under 45 without any adverse health history do not need to go through medical tests.

However, it's best to buy a health cover now to ensure that the entire process is completed before March 31 as those over 45 will have to wait till the policy is issued post-medical tests.

Tax benefit: Deductions up to Rs 15,000 under Section 80D (Rs 20,000 for senior citizens)

Taxability on maturity: NA



Invest in a tax-saver deposits

A popular instrument, it is simple to invest in one if you are registered for Internet banking. All you have to do is open a five-year tax-saver fixed deposit by transferring funds from your savings account. The FD receipt mailed to your account will serve as proof for claiming tax benefits.

However, not all banks allow customers to open a tax-saver FD online, even though the facility is enabled for regular FDs.

Tax benefit: Exemptions up to Rs 1.5 lakh under Section 80C

Taxability on maturity: Interest earned is taxable



Opt for PPF and NPS

PPF is best-suited for those with a low risk appetite. You can open a PPF account with online facilities through some banks, but you will have to submit your application form and KYC proof in person at a branch. Subsequently, you can transfer funds online through your linked savings bank account.

From the next financial year, NPS will offer an additional tax break of up to Rs 50,000. Opening of the account still entails cumbersome paperwork and visits to points of presence authorised by the Pension Funds Regulatory and Development Authority.

Tax benefit: Exemptions up to Rs 1.5 lakh under Section 80C

Taxability on maturity: PPF Exempt; NPS Taxable

coal and mining Bills in the Rajya Sabha

Coal and power minister Piyush Goyal wrote a long Facebook post over the weekend, thanking the individual Opposition leaders and parties who supported the coal and mining Bills in the Rajya Sabha where the ruling coalition doesn't have a majority.

What he didn't, however, write about was the behind-the-scenes drama to split the Opposition and isolate the Congress and Left parties.

"Though we had spoken to all the leaders from our side, we could not be certain that they would actually vote for the bills," said Minister of State for Parliamentary Affairs Mukhtar Abbas Naqvi. "We were worried till the last moment about how they would vote."

ET spoke to several BJP leaders, ministers and Opposition members to piece together the government's strategy, essentially driven by Rajya Sabha leader Arun Jaitley. Prime Minister Narendra Modi did his bit by speaking informally to Opposition leaders such as Naveen Patnaik, Mamata Banerjee, Mulayam Singh Yadav and Mayawati.

As part of a well-planned strategy, Union ministers Venkaiah Naidu, Goyal, NS Tomar, Naqvi and Jaitley reached out to "amenable" Opposition parties, holding secret meetings and through phone calls.

"We knew it would be difficult to get the Congress and Left parties on board, so we focused on the others including Biju Janata Dal, Trinamool, AIADMK, NCP, JD(U), SP and BSP," said a minister. "We talked to them separately, trying to impress upon them the benefits of the two bills ... for the states, and how it will bring in more transparency."

Jaitley, Goyal and Tomar met BJD leader and Odisha Chief Minister Patnaik at Odisha Bhavan during his visit to the Capital on March 9.

The PM had already spoken to Patnaik the previous night. They tried convincing Patnaik about supporting the coal, mines and land bills, said a BJD leader.

"The CM agreed to support only the coal bill initially since they accepted some of the suggestions made by him. Patnaik also made four suggestions regarding the land bill to which the BJP leaders responded positively. We had our differences over the mining bill though."

The BJD was opposed to the clause that allowed automatic lease extension of captive and non-captive merchant mines, whose lease validity had lapsed. "The matter was settled after deliberations with the Centre's team when they agreed to extend validity of mines only on the basis of the state government's recommendation," he added.

It was more or less the same strategy with the Trinamool. Modi had a meeting with Banerjee on March 9.

This was followed up by Goyal meeting her and Rajya Sabha member Derek O'Brien. In January, Jaitley had spoken to Banerjee in Kolkata.

"We held a series of meetings with Jaitley and Goyal. We suggested some amendments and they accepted them," O'Brien said. The clincher was a clause that allowed e-auctioning. "In Bengal, we have seen an 87% rise in revenues after e-auctions," he added.

Though the government had given up on the Congress, Naidu is believed to have reached out to Ghulam Nabi Azad but failed to get him on board. However, he was successful in convincing NCP chief Sharad Pawar to go with the government.

Modi's gesture of attending the prewedding ceremony of Mulayam Singh Yadav's grand-nephew had broken the ice between the two leaders.

A senior BJP leader said breaking the Opposition unity had become very critical. "The wakeup call for the government was when the Opposition forced an amendment to the Motion of Thanks over the President's address in Rajya Sabha. It was then the government decided that no stone would be left unturned to break the Opposition unity."

How a rising dollar is creating trouble for emerging economies

In India, it is a leading electric utility, Jaiprakash Power Ventures, selling off facilities and negotiating with lenders to avoid a default, having increasing its debts thirtyfold in six years.

In China, it is one of the country's largest real estate developers, the Kaisa Group, threatening to pay only 2.4 cents on the dollar to its creditors in the face of corruption investigations and a mass resignation of executives, leaving countless would-be Chinese home buyers stuck in the middle of a multibillion dollar standoff.

And in Brazil, a wave of bankruptcies among sugar producers has been driven not just by falling sugar prices, but also by debts that they owe in United States dollars, which are becoming more expensive practically by the day compared with the Brazilian currency.


These are all parts of the same story: The soaring value of the American dollar is rippling across the globe. As it rises, it is threatening emerging economies where companies have taken on trillions' worth of dollar-based debt in recent years. The dollar rally has been driven by decisions by the Federal Reserve, which begins a two-day policy meeting on Tuesday. In fact, anticipation of the Fed meeting, where officials are expected to signal that interest rate increases could be near, has driven the dollar even higher in the last couple of weeks.

In effect, as Fed policy makers sit around a mahogany table in Washington to try to guide the United States economy toward prosperity, their actions are having outsize, often unpredictable impacts across the globe, owing to the dollar's central role in the global financial system.
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Years of low-interest-rate policies from the Fed have encouraged companies in these fast-growing economies to borrow dollars because they could do it more cheaply than if they took out loans in their local currencies, like the Indian rupee or Brazilian real. So they did: By September 2014 there were $9.2 trillion of such dollar loans outside the United States, up 50 percent since 2009, according to the Bank for International Settlements.

As Raghuram Rajan, the Reserve Bank of India's governor, put it earlier this year in an interview with Bloomberg Television, "Borrowing in dollars is like playing Russian roulette, especially if you're borrowing relatively short term." Much of the time it will work out fine, but when the value of the dollar rises, suddenly companies find that they need more of their local currency to pay back the dollars that have since gained in value.
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And rise the dollar has. Since the Federal Reserve signaled in summer 2013 that it would wind down its "quantitative easing" policy of buying billions of dollars in bonds using newly created money — that the gusher of dollars flowing into the global financial system would come to an end, in other words — the dollar is up 25 percent against a basket of commonly used international currencies.

"Now that the dollar has strengthened and rates are on the rise, it presents a risk and a challenge to many emerging markets in that their debts have become more onerous, more burdensome," said Hung Tran, an executive managing director at the Institute of International Finance, an association of global banks. "The challenge for authorities in emerging market countries is to understand to what degree their corporate sector is naked or exposed."

Companies in emerging markets that are primarily exporters might be O.K. After all, their revenue is in dollars, and so it should keep pace with rising debt service obligations. But for those focused domestically, like real estate developers or electric utilities, a more expensive dollar can make it much more costly to service debts. Money coming in is in a local currency like the Indian rupee or the Malaysian ringgit, and it suddenly takes a lot more of them to pay debts owed in dollars.
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Hyun Song Shin, who heads research at the Bank for International Settlements, argues that a rising dollar has an effect of tightening the supply of money across the global economy. A Malaysian company doing business with a South Korean company will frequently carry out transactions in dollars, not ringgits or won. Dollars will now be available on more stringent terms. Clearly, decisions made by Janet Yellen, the Fed chairwoman, and her colleagues in Washington can have a big effect on transactions even when no American companies are involved.

In some economists' ears, that creates echoes of the crises that crushed East Asian economies in the late 1990s and Latin American economies in the early 2000s. In those cases, there was also a currency mismatch that sent the economies of South Korea, Indonesia, Thailand and Argentina into a tailspin.

The biggest difference this time around is that private companies, not governments, have incurred debt in a currency not their own. What is likely to follow are bankruptcies, layoffs and cost-cutting for individual companies that borrowed too aggressively. A vicious cycle of economic collapse and government austerity measures is harder to imagine.

And indeed, the rising dollar and falling emerging-market currencies cut both ways for the economies in question. Even as companies that gorged on dollar debt run into trouble, falling currency values make exporters more competitive on global markets. The International Monetary Fund projects that emerging economies worldwide will grow 4.3 percent this year, compared with 2.4 percent for the advanced economies.

In a wide-ranging speech last fall wrestling with the global impact of Federal Reserve policy, Stanley Fischer, the vice chairman of the Fed (and former governor of the Bank of Israel, where he grappled with powerful spillover effects from the Fed's actions firsthand), discussed the risks emerging markets faced as rising interest rates in the United States drove up the dollar.

"It does not seem that the overall risks to global financial stability are unusually elevated at this time, and they are very likely substantially less than they were going into the financial crisis," Mr. Fischer argued. "Nevertheless, it could be that some more vulnerable economies, including those that pursue overly rigid exchange rate policies, may find the road to normalization somewhat bumpier."

This, he said, makes clear communication about the Fed's intentions all the more important. With the central bank's meeting this week and the day of tighter money in the United States inching ever closer, the multitrillion-dollar question for the global economy is, Just how many of these companies will ride out the bumps, and how many more will crash?