Invest Smartly for Tax Benefits with ELSS
25 Jan 2024
Boost Your Tax savings with ELSS
An ELSS FUND or EQUITY LINKED SAVING SCHEME (ELSS) as the name suggests invests its corpus in equity & equity related instruments and comes with a lock-in period of 3 years whilst offering tax exemption of up to Rs. 1,50,000 from your annual taxable income under section 80C of the income tax act.
Key Features of ELSS
- Tax deduction up to Rs. 1.5 lacs under section 80C
- Lowest lock-in period of 3 years amongst tax saving instruments
- Twin benefit of Tax saving+ Wealth creation
- Invest in diversified sectors across market caps
- Start investing with as low as Rs 500
ELSS vis-a-vis other tax saving instruments
| Tax Saving Funds (ELSS) | Life Insurance (ULIP**) | PPF | NSC | 5 Years Bank FD | |
|---|---|---|---|---|---|
| Minimum Lock IN Period | 3 years | 5 years | 15 years | 5 years | 5 years |
| Returns | 17%* | 6~7%* | 7.1% | 7.7% | 6~7% |
| Is Returns Taxable | YES | YES | NO | YES | YES |
**Unit linked insurance plan
past performance is not an indication of future performance.
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. The information provided is generic in nature and is for informational purpose only. Please consult your financial advisor before taking any decision.
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