As the income tax return (ITR) deadline nears, many are searching for ways to save taxes without locking their money for long durations. Traditional investments like PPF and ELSS often require long-term commitments, but there are several smarter options that offer both tax benefits and financial flexibility.

1. Employee Provident Fund (EPF): Contributions by salaried employees automatically qualify for Section 80C deductions. Partial withdrawals are allowed for specific needs like medical emergencies or education.

2. Tax-saving Fixed Deposits: These 5-year FDs are eligible under Section 80C and offer emergency liquidity through loans or overdraft, unlike PPF or NPS.

3. Home Loan Benefits: Principal repayment qualifies under Section 80C, while interest up to ₹2 lakh can be claimed under Section 24(b), with no lock-in.

4. Health Insurance Premiums: Section 80D allows deductions up to ₹25,000 (₹50,000 for senior citizens) on health insurance premiums.

5. National Pension System (NPS): Tier I accounts give additional ₹50,000 deduction under Section 80CCD(1B), while Tier II accounts allow flexible withdrawals.

These smart strategies help save on taxes while maintaining liquidity.