Is ELSS interest tax free?
Among all mutual funds, the equity-linked savings scheme or ELSS is the only mutual fund covered under Section 80C deductions. ELSS is a diversified equity mutual fund that offers tax deductions of up to Rs. 1.5 lakhs annually. Previously, ELSS returns were tax-free.
How can I reduce my taxable income 2021?
6 Ways to Lower Your Taxable Income
- Save for Retirement. Retirement savings are tax-deductible.
- Buy tax-exempt bonds.
- Utilize Flexible Spending Plans.
- Use Business Deductions.
- Give to Charity.
- Pay Your Property Tax Early.
- Defer Some Income Until Next Year.
How can I save my tax after 80C?
Recommended ways of saving taxes under Sec 80C,80D and 80EE
- Make an investment of Rs 1.5 lakh under Sec 80C to reduce your taxable income.
- Buy Medical Insurance, maximum deduction allowed is Rs.
- Claim deduction up to Rs 50,000 on Home Loan Interest under Section 80EE.
How to save income tax by investing in ELSS mutual funds?
Investment in ELSS mutual funds is not only the best way to save income tax but also holds ample growth potential for your savings. Save up to Rs. 46,350 in tax and create wealth at the same time by investing in the best Tax Saving (ELSS) mutual funds!
What is the tax rate on ELSS returns?
A. ELSS returns upto Rs. 1 lakh are exempted from tax after the lock-in period of 3 years is completed. Returns exceeding Rs. 1 lakh levy Long Term Capital Gains Tax which currently stands at 10\%. Q. How do I invest in ELSS funds?
What is ELSS (an equity linked savings scheme)?
An Equity Linked Savings Scheme (ELSS), popularly known as a tax-saving mutual fund, is the only mutual fund which qualifies for a tax deduction of up to Rs. 1.5 lakh annually under Section 80C of the Income Tax Act. As the name suggests, it is a type of open-ended equity fund.
What is the minimum amount required to start an ELSS?
One can start with a minimum amount of Rs. 500 in a SIP and there is no upper limit. However, the tax exempted amount is only Rs. 1.5 lakh in the financial year. One can also start with lump sum investment in ELSS.