ELSS Mutual Fund Tax

Hey Team Niyo,

I am willing to start my mutual fund journey from Niyo app but a little bit confused regarding your pop up information that “Save tax upto 46,000/ year under 80C”.

What if I invest 1.5 Lakh rupee in ELSS then still I could claim only 46,000 under 80C?

Looking forward to hearing from you!

It says save tax upto 46800. You can save this much if your income is more than 10 lacs and you fully utilise you 80C exemption limit i.e 1.5 lac in a FY.
Please note you can utilise 80c by contributing in elss, PPF, ulip, fd etc.

Tax saving by utilising 80C will depend on your income tax bracket.

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@goneo, suppose my income is 7 lakh and I invested 1.6 lakh into ELSS.

Can’t I claim whole 1.5 lakh under 80C?

I didn’t understand the 46,800 logic!

Hey @iamraj02 . Here’s something just for you! Read it here: 3 important things you can do with ₹ 46,800! 😀

The government has set tax brackets for various income levels and also has 2 versions of tax regimes. Depending on your taxable income, you can invest up to Rs 1.5 Lakhs under section 80C to save some tax. This can be done through ELSS Mutual Funds, Provident Fund, Life Insurance and many more mediums.

@Savitri_Bobde Could you step in and explain to @iamraj02 based on his income?

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Hey @iamraj02 Read through this blog - should give you the logic for the calculation - A beginner's guide to 80C tax saving through mutual funds

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Thank you for clearing doubts. I appreciate it.

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