Here’s what I mean by ‘tax-inefficient’; say its tax season and you realise that your tax obligations are huge, so you drop a lump-sum into your PPF or an ELSS. This is not really the best way to go about things. Even worse, what if you didn't have that lump sum ready? Then there is the issue of improper filings (it boggles my mind that so many people don't know that the interest from their savings account is taxable, just the way interest from a fixed deposit is). The Income Tax department is getting more efficient and automating more processes every year, meaning more and more people are getting notices for non-compliance and trust me, you do not want to get an IT notice.