Tax Planning and Saving

I am a 22 year old person and just started to earn.I am a very long term investor.Please suggest me an investment option which suits my needs.My requirements are :

1. The investment should help me save tax.

2. It should be a liquid option i.e I should be able to withdraw my money at moment of time,may be incase of emergency.

3. I can compromise on returns i.e a lesser percentage of return is not a problem .

4. I am already a lot into equity,so I want this option to be a bit on the safer side,preferably debt-oriented.

The first two criteria are the most important.I am not getting any such option to my mind,so kindly suggest me something.

Thanks in advance.

Tax Planning is often considered to be an annual activity, where at the end of a financial year, you plan your taxes and make investments to avail tax saving benefits. But, this is not how it should be done; Tax Planning is an ongoing process, which covers varied aspects especially related to different Investment options, which are not only an ideal way to avail Tax benefits but are earn profits for the same.

Originally Posted by mohnish_khiani

I am a 22 year old person and just started to earn.I am a very long term investor.Please suggest me an investment option which suits my needs.My requirements are :

1. The investment should help me save tax.

2. It should be a liquid option i.e I should be able to withdraw my money at moment of time,may be incase of emergency.

3. I can compromise on returns i.e a lesser percentage of return is not a problem .

4. I am already a lot into equity,so I want this option to be a bit on the safer side,preferably debt-oriented.

The first two criteria are the most important.I am not getting any such option to my mind,so kindly suggest me something.

Thanks in advance.

Unfortunately, all tax saving options come with a minimum lock in period of 3 years (Mutual Funds, FD & so on). There's no option with tax saving, where you can liquidate immediately.