Equity Linked Savings Schemes (ELSS) are mutual funds that offer tax benefits under Section 80C of the Income Tax Act. ELSS funds can be an excellent choice for education planning while also providing tax savings. Building Your Dream Home ...
Tax Saving Funds– Tax saving funds such as Equity Linked Savings Schemes (ELSS) help you save on taxes under Section 80C of the Income Tax Act, 1961, while you grow your money by investing in the fund. Index Funds/Exchange-Traded Funds– Index Mutual Funds are passively managed fund which...
Though investment in ELSS funds qualifies for tax deduction under Section 80C of the Income Tax Act, 1961, the returns are taxable. Since these funds majorly invest in equities, they are treated asequity mutual fundsfor the purpose of taxation. Also, since they have a lock-in of 3 years,...
Features of an ELSS Mutual Fund: Dual Benefit ELSS funds are the only type of mutual funds in the Indian market, that give you the dual benefit of a tax rebate and wealth appreciation. Under Section 80C of the Income Tax Act, 1961, one can save Rs 46,800 in a year, as tax deductio...
The voluntary retirement schemes like Mutual Fund pension schemes, Insurance Pension schemes, PPF, National Pension Scheme (NPS) etc. are available in India for general public. Mutual fund pension schemes besides providing tax benefit under section 80C of IT Act, also have the potentiality of ...
ELSS funds work just like other diversified equity mutual fund schemes. The only differences are the 3-year lock-in period and tax benefit eligibility under Section 80C. Here’s a quick overview of ELSS mutual funds: The fund manager invests across a range of stocks after research. ...
you will be in a better position to stay invested in the fund throughout the investment horizon without having to exit in an unplanned manner which can attract unnecessary tax liabilities. If you cannot find good mutual funds to invest in and which are suitable for your needs, go ahead and...
b. Tax Benefit While Redemption/Sale Redemption/sale of mutual funds is taxed from rates as low as 0% (long-term capital gain on equity or hybrid or balanced fund of less than Rs. 1 lakh in a year) up to 30% (highest tax slab on short-term capital gain on debt fund). ...
7. Tax Benefits—Investment in ELSS upto ₹1,50,000 qualifies for tax benefit under section 80C of the Income Tax Act, 1961. Mutual Fund investments when held for a longer term are tax efficient.
Simplicity is not the only benefit of mutual funds. This form of investment is also versatile as it is used by both—experts as well as beginners. Investors will be able to get short-term or long-term savings, automatic credit, systematic withdrawal, dividends out of mutual fund investments....