How much should I invest in mutual funds to save tax?
You are allowed to invest up to Rs 1.5 lakh in tax-saving funds. You will get a tax deduction of up to Rs 1.5 lakh under Section 80C of the Income Tax Act. a. ELSS funds are the only tax-saving funds within the Rs 1.5 lakh limit which has the additional advantage of giving equity-linked returns.
How much should I invest in ELSS mutual funds?
ELSS mutual funds give better returns than other tax saving options like PPF and FD. Among all other tax savings options, ELSS funds have the least lock-in period. One can start investing in ELSS funds with an amount as low as INR 500. They can either invest through the SIP route or invest a lump sum amount.
Is Tata Ethical fund ELSS?
Fund Overview The Tata India Tax Savings Fund is an open-ended equity linked tax saving scheme (ELSS) with a compulsory lock-in period of three years. It has the dual advantage of Tax Benefit under Section 80C of the Income Tax Act and the opportunity to catch the long-term upside potential of the Indian equity market.
How can I reduce my taxable income in India?
Here’s a list of popular investment options to save tax under section 80C.
- Public Provident Fund.
- National Pension Scheme.
- Premium Paid for Life Insurance policy.
- National Savings Certificate.
- Equity Linked Savings Scheme.
- Home loan’s principal amount.
- Fixed deposit for a duration of five years.
- Sukanya Samariddhi account.
What is the maximum amount one can invest in ELSS?
There is no maximum limit. However, tax deduction will be available only up to Rs 1.5 lakh, or the amount invested in the financial year, whichever is lower. One can make a lumpsum investment in ELSS. Alternately, the investor can opt for a systematic investment plan ( SIP ).
How to invest in equequity-linked savings scheme (ELSS)?
Equity-linked savings scheme (ELSS) is one such investment avenue. ELSS funds have a lock-in period of three years. Here’s how one can invest. An essential requirement for investing in mutual funds is KYC compliance, and this is mandatory for ELSS too.
What is the lock-in period for ELSS funds?
ELSS funds have a lock-in period of three years. Here’s how one can invest. An essential requirement for investing in mutual funds is KYC compliance, and this is mandatory for ELSS too. Proof of address and identity, along with an in-person verification process, must be completed before investing.
What is the tax deduction for ELSS in India?
The tax deduction in ELSS will be available only up to Rs 1.5 lakh, or the amount invested in the financial year, whichever is lower. Section 80C of the Income-tax Act allows deduction of up to Rs 1.5 lakh from taxable income if an assessee invests in any of the instruments approved under this section.