Help to save Tax up to 46,800 By investing Rs 1.5 lakhs under Section 80C of Income Tax Act 1961
Click HereLowest lock in period of 3 years, amongst all Sec 80C investment options
Click HereThis is how much tax you pay
9,25,600.00
With ELSS funds, your tax reduced to
9,11,560.00
14,040
Performance comparison of investing in Equity market vs traditional tax saving products i.e. Nifty 50 TRI vs PPF & Bank Fixed Deposit.
ELSS or Equity Linked Saving Scheme is an open ended equity mutual fund that offers the dual-advantage of potential wealth creation and tax saving.
Read MoreMillennials are a very important demographic segment in India, constituting nearly half of our workforce.
Read MorePublic Provident Fund (PPF) is one of the popular traditional 80C tax savings options in India. There are several reasons for PPF’s popularity among tax payers.
Read MoreThere are several provisions in the Income Tax Act wherein salaried individuals can save taxes, but Section 80C of the Income Tax 1961 Act provides the biggest tax saving opportunity.
Read MoreELSS or Equity Linked Saving Scheme is an open ended equity mutual fund that offers the dual-advantage of potential wealth creation and tax saving. These funds have a statutory lock-in period of 3 years and invest primarily in equity and equity related products.
You can annually save up to Rs 46,800 in tax by investing in ELSS. Assuming you fall in the highest tax bracket and invest Rs 1.5 lakhs.
As the name suggests, funds invested in an ELSS fund will be invested in the equity market and hence based on historical performance, a higher probability of outperforming other tax saving options.
Long Term Capital Gains over Rs 1 Lakh are taxed at 10% and dividend received by investors is tax free.
No. Since ELSS is an equity scheme it is subject to market risk and does not guarantee return.
It is advised to have a long time horizon (3+ year) while investing in this fund.
No, since there is a statutory lock in period of 3 years; early withdrawal is not possible.
This is totally on you . You can either invest Rs 1.5 lakhs lumpsum or Rs12,500 on a monthly SIP basis. Minimum investment amount via SIP OR lumpsum is Rs 500.
One big benefit over a lumpsum investment is that SIP enables you to lower the average cost of your investment and reduce the risk of your investment. This is known as rupee-cost averaging.
Yes, by having a long term horizon one can aim to create a corpus through ELSS funds due to the dual advantage of potential capital appreciation and tax saving.
No, ELSS is not completely risk free like other tax saving options such as Bank FD and PPF. Their risk profile is similar to any equity-oriented mutual fund scheme.
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