Which mutual fund scheme gives tax benefits?
ELSS mutual funds are also referred to as the tax-saving mutual funds. The provisions of Section 80C of the Income Tax Act, 1961, allows you to claim tax deductions of up to Rs 1,50,000. ELSS is the best investment option under this Section.
Why is ELSS better than other tax saving instruments?
Equity exposure You might already know the potential of the stock market and how it can help you generate excellent returns on a long-term basis. Apart from ELSS funds, no other tax saving instrument under 80C offers such high exposure in equity. Thus, with an ELSS fund, the chances of capital appreciation are higher.
How much tax is exempt from ELSS?
An equity-linked savings scheme or ELSS is a tax-saving investment under Section 80C of the Income Tax Act, 1961. By investing in ELSS, you can claim a tax rebate of up to Rs 1,50,000 a year and save up to Rs 46,800 a year in taxes. An ELSS is the only kind of mutual fund eligible for tax benefits under Section 80C.
What is difference between mutual fund and ELSS?
An ELSS is also a mutual fund that offers tax deductions of up to Rs 1,50,000 a year under Section 80C of the Income Tax Act, 1961. The only difference between an ELSS and other mutual funds is that the later doesn’t offer tax benefits.
What is ELSS and its benefits?
What is the difference between ELSs and equity mutual funds?
ELSS vs equity mutual funds: ELSS mutual fund is a category of equity funds where an investor is given income tax exemption benefit by the Income Tax Department under Section 80C. ELSS vs equity mutual funds: Under Section 112 (A), an investor has to give LTCG tax on equity mutual fund income if the investment is for more than one year.
Are ELSS mutual funds liable for tax deductions?
Investments upto INR 1,50,000 in ELSS Mutual Funds are liable for tax deductions from the income, as per Section 80C of the Income Tax Act. Though ELSS is a type of Equity Funds, it offers various unique features that make it different from the usual equity funds.
What is the best ELSS fund to invest?
4. Top Performing ELSS Funds Fund Name 3-year Return (\%)* 5-year Return (\%)* Quant Tax Plan Direct-Growth 28.80\% 22.29\% Mirae Asset Tax Saver Fund Direct-Growth 20.52\% 21.94\% Canara Robeco Equity Tax Saver Direct- G 19.16\% 18.97\% IDFC Tax Advantage (ELSS) Direct Plan-Gr 15.94\% 17.60\%
How is ELSS different from other tax saving options?
ELSS has a lock-in period of only 3 years, as compared to minimum 5 years for other tax saving options. This period is the lowest in comparison to other tax saving options such as 15 years in a PPF or 5 years in a Fixed Deposit option. Thereby ELSS provides higher returns with the lowest lock-in period.