Taxation of ELSS Funds 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...
As an investment avenue, Mutual Funds offer inflation-beating and tax-efficient returns. They offer complete control over your money and the freedom to invest as per your needs. Mutual Funds offer a window to invest across different asset classes such as equity, debt, gold. ...
The unique feature of ELSS funds is their tax-saving benefit under Section 80C of the Income Tax Act, as it gives benefits and allows investors to claim deductions on investments up to Rs 1.5 lakhs. The ELSS Calculator uses this investment amount and the investor's applicable tax slab, which...
Consider ELSS Funds 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 ...
As compared to other tax-saving avenues, these funds have the shortest lock-in period of three years. Investing in ELSS Funds makes you eligible for a tax deduction of up to Rs 1.5 lakh under Section 80C of the Income Tax Act. In this way, you can reduce your tax liability as the ...
Learn about ELSS Mutual Funds, a tax-saving investment option in India. Understand how ELSS funds work and their benefits for long-term wealth creation.
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.
a. Tax Benefit While Investing in Mutual Funds Equity Linked Savings Scheme (ELSS) are open-ended Equity Mutual Funds. When an investor puts in any amount in such funds, the investment qualifies for deduction under section 80C of the Income Tax Act. As such, if the investor puts in Rs. ...
LTCG is the equity investments that are redeemed after 12 months. They are tax-free up to Rs. 1 lakh in a financial year, beyond which they attract taxation of 10% (plus 4% cess) without any indexation benefit. However, please note there are also tax-saving equity funds su...
In the previous section, we got to know about the various types of financial markets funds. Let us see the various advantages offered by mutual funds: Tax Efficiency Under Section 80C of the Income Tax Act, 1961, you are able to invest in tax-saving mutual funds known as ELSS (Equity ...