Tax Saving Mutual Fund
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ELSS VS PPF
An ELSS is an Equity Linked Savings Scheme, that allows an individual or HUF a deduction from the total income of up to Rs. 1.5 lacs under Sec 80C of Income Tax Act 1961.
Thus if an investor was to invest Rs. 50,000 in an ELSS, then this amount would be deducted from the total taxable income, thus reducing her tax burden.
These schemes have a lock-in period of three years from the date of units
allotment. After the lock-in period is over, the units are free to be redeemed or switched. ELSS oer both growth and dividend options. Investors can also invest through Systematic Investment Plans (SIP), and investments up to ₹ 1.5 lakhs, made in a nancial year are eligible for a tax deduction