What is the difference between ELSS and sip?
ELSS is an investment vehicle in itself while SIP is not, it is instead a way of investing not only in ELSS but also in any other mutual fund. Therefore, ELSS cannot be compared with SIP as it’s not an apple to apple comparison.
Is SIP eligible for 80C deduction?
You can initiate an SIP into an ELSS, the most popular tax-saving investment under Section 80C of the Income Tax Act, 1961. Every SIP instalment into an SIP counts towards tax deductions under Section 80C. You can claim a tax rebate of up to Rs 1,50,000 and save up to Rs 46,800 a year in taxes.
Can we use SIP for tax exemption?
SIPs can be one of the best tax-saving instruments with high returns on your investments. You can claim a deduction of up to Rs. 1.5 lakh from your taxable income for investing in ELSS through SIPs under Section 80(C) of The Income Tax Act, 1961. With the highest tax slab of 30\%, you can save up to Rs.
What is ELSS in income tax?
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.
Which is best mutual fund for tax saving?
The table below shows the top-performing ELSS mutual funds based on the past five year returns:
| Mutual fund | 5 Yr. Returns | Min. Investment |
|---|---|---|
| Mirae Asset Tax Saver Fund – Direct Plan – Growth | 24.25\% | ₹500 |
| Canara Robeco Equity Tax Saver Fund | 20.99\% | ₹500 |
| JM Tax Gain Fund – Growth | 19.21\% | — |
| Mirae Asset Tax Saver Fund | 22.52\% | ₹500 |
Do I have to declare SIP on tax return?
If the long-term capital gains are less than Rs 1 lakh, then you don’t have to pay any tax. However, you make short-term capital gains on the units purchased through the SIPs from the second month onwards. These gains are taxed at a flat rate of 15\% irrespective of your income tax slab.
Is SIP return taxable?
If a SIP of an equity fund is held for less than 12 months, there will be short-term capital gain taxable at 15\%. But if a SIP of a debt fund is held for 36 or more months, then there will be long-term capital gain taxable at 20\% after indexation of cost.
What is SIP equity fund?
A Systematic Investment Plan (SIP), more popularly known as SIP, is a facility offered by mutual funds to the investors to invest in a disciplined manner. SIP facility allows an investor to invest a fixed amount of money at pre-defined intervals in the selected mutual fund scheme.
What is the difference between ELSs and SIP?
ELSS provides oneself dual benefit viz., tax saving as well as investment earning. ELSS is a type of mutual fund which can help in tax saving for the individual. SIP is one way to invest in Mutual Funds which can be ELSS as well. You can invest into ELSS via the lumpsum mode as well.
What is ELSs and how to invest in it?
ELSS is a type of mutual fund which can help in tax saving for the individual. SIP is one way to invest in Mutual Funds which can be ELSS as well. You can invest into ELSS via the lumpsum mode as well. You can check out a few good ELSS Schemes to invest in 2017.
Should you invest in sips or lumpsum payments?
Whereas if you have a large corpus of funds available, you can invest in Mutual Funds via Lumpsum payments. It will also help you save taxes for a financial year if you make the investment before the month of May. SIPs are usually more suited for investment in volatile markets.
What is an SIP and how does it work?
SIPs offer a simplified way to make investments in ELSS, as the investments are spread over time. It lowers the risk of market fluctuations as only a small part of one’s investment faces market volatility. It can prove especially helpful for new investors, as they might not be able to deduce what will be the best time to invest in the market.