Table of Contents
How much tax can be saved by investing in ELSS?
ELSS mutual funds are the only class of mutual funds eligible for tax deductions. You can save up to Rs 46,800 (tax deductions of up to Rs 1,50,000) a year in taxes by investing in ELSS, which is covered under Section 80C of the Income Tax Act, 1961.
Are tax saving mutual funds good?
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. By investing in these mutual funds, you get the dual benefit of tax deductions and wealth accumulation over time.
How much return will I get from ELSS?
Comparison of ELSS With Other Tax-Saving Instruments
| Investment | Returns | Lock-in Period |
|---|---|---|
| Public Provident Fund (PPF) | 7\% to 8\% | 15 years |
| National Savings Certificate | 7\% to 8\% | 5 years |
| National Pension System (NPS) | 8\% to 10\% | Till Retirement |
| ELSS Funds | 15\% to 18\% | 3 years |
Which ELSS should I invest in 2021?
List of Top ELSS Funds to Invest in 2021
- Mirae Asset Tax Saver Fund.
- Canara Robeco Equity Taxsaver fund.
- DSP Tax Saver Fund.
- Axis Long Term Equity Fund.
- ICICI Prudential Long Term Equity Fund Tax Saving.
- SBI Magnum Long Term Equity Scheme.
- BNP Paribas Long Term Equity Fund.
Can I stop ELSS before 3 years?
Can ELSS be Withdrawn Within 3 years? The simple answer to this question is No. ELSS investments do not provide the option to withdraw the investment amount before the end of the 3-year lock-in period. In ELSS, investors are given fund units against their invested amount.
Which is the best ELSS to invest in 2021?
Is ELSS better than PPF?
However, PPF offers much lower returns over a longer time horizon than ELSS. The tax benefits and capital safety are more in favour of PPF; ELSS certainly is an option for better returns. It depends on whether you have the appetite for market volatility or not.
How much should I invest in ELSS?
If you want, you can invest up to Rs. 1.5 lakhs per fiscal year in an ELSS scheme and bring down your gross taxable income. As per Section 80C of the Indian Income Tax Act, 1961, investments made in tax saving instruments like ELSS are eligible for a tax deduction.
What is the best ELSS scheme?
After this period is over, an ELSS scheme converts into an open-ended scheme. Under section 80C of the Income Tax Act 1961, investments of up to Rs….List of Elss Mutual Funds in India.
| Fund Name | Canara Robeco Equity Tax Saver Fund |
|---|---|
| Risk | Very High |
| 1Y Returns | 41.6\% |
| Rating | 5 |
| Fund Size(in Cr) | ₹2,876 |
Can I withdraw ELSS before 3 years?
When can I withdraw my ELSS?
Yes, since the ELSS investment has completed five years, you can withdraw the first year’s investment and re-invest it. Long term capital gains tax would be applicable for capital gains of more than Rs 1 lakh in a financial year.
How do I redeem my ELSS money?
If you have made your ELSS Mutual Fund investment via the lump sum route, i.e., at one go, all your units will be allotted on the same day. And therefore, once the 3 year lock-in period is over, you can redeem your entire ELSS investment in one go.
When should you invest in tax saving ELSS funds?
Anyone can invest in ELSS funds at any point of time in their life. However, it is suggested to invest in tax saving ELSS funds during the early stage of your career so that your money grows over time and you earn better returns. Hence, save tax and earn good returns both at the same time by investing in Best elss Funds.
What is ELSS (equity linked saving scheme)?
As the name suggests, Equity Linked Saving Scheme or ELSS is a type of mutual fund scheme that primarily invests in the stock market or Equity. Investments of up to 1.5 Lac done in ELSS Mutual Funds are eligible for tax deduction under section 80C of the Income Tax Act.
How much can I invest in ELSS under Section 80C?
Under section 80C, one can avail tax benefit of upto ₹46,800 by investing upto ₹1.5 lakhs per year in ELSS. You can also invest more than ₹1.5 lakhs in ELSS, but tax benefit can not be availed on the investment exceeding ₹1.5 lacs.
What is the lock-in period of ELSS mutual funds?
ELSS Mutual Funds have a lock-in period of 3 years. What is the maximum tax benefit that can be availed by investing in ELSS every year? Under section 80C, one can avail tax benefit of upto ₹46,800 by investing upto ₹1.5 lakhs per year in ELSS.