Investment: Investing smartly has a double benefit as it not only helps in accumulating wealth for future but also saves some amount of salary from tax deduction. There are ample options to invest which will help in saving tax as well. These options include PPF, NPS, ELSS funds etc.
ELSS Fund: The date for filing income tax return is getting closer. On the other hand, if income tax is filed from the old tax regime, then some investments will also have to be shown to save tax. Tax can be saved through these investments. Whereas today we are going to tell about tax saving under section 80C of income tax.
- tax saving
Investing smartly has a double benefit as it not only helps in accumulating wealth for the future but also saves some amount of salary from tax deduction. There are ample options to invest which will help in saving tax as well. These options include PPF, NPS, ELSS funds etc.
- investment
Many people also start saving as soon as they get their first salary. Tax saving investment options also help in harnessing the power of compounding in long term investments, which helps to grow a small amount of investment at the time of maturity. Here let’s know about ELSS which is included in tax saving investment options.
- ELSS Fund
For those who want to take a step ahead and explore some more tax efficient investment options, they can invest in equity using ELSS funds. These are called tax saving funds as they provide tax exemption under section 80C of the Income Tax Act up to a maximum of Rs 1,50,000 from the annual taxable income.
- lock in period
ELSS Fund is an equity-oriented scheme. It has a lock-in period of 3 years. The amount earned after investing for a tenure of 3 years will be taxed at the rate of 10% by the government as it will come under the category of long term capital gain.
