Tired of paying taxes and wish you could have saved up that amount and invest to create wealth? Here’s just the thing for you.
Some individuals invest mainly with the goal of saving tax along with wealth creation. For such investors, equity linked saving schemes (ELSS) are the best. Under Section 80C of the Income Tax Act, ELSS funds provide investors with a deduction of up to Rs. 1,50,000/financial year from their taxable income. The net tax saving can be as follows:
- For individual in 10% tax bracket – Rs. 15,000 + cess
- For individual in 20% tax bracket – Rs. 30,000 + cess
- For individual in 30% tax bracket – Rs. 45,000 + cess
ELSS funds have a lock-in period of 3 years. If you are investing through SIP, then every instalment will have a lock-in of 3 years.