ELSS - Tax Saving from Mutual Funds
Would you love to see a situation where your money growing at a much faster pace and you get to save on your taxes too? If yes, then the answer is Mutual Funds.
If you invest your money in Fixed Deposits, you could end up paying up to 30% tax on the interest earned every year.
Equity Linked saving scheme (ELSS)is a special fund for investors seeking tax benefits along with superior returns. Its various features are:
- It’s an equity mutual fund where investors are required to invest for a minimum of 3 years.
- Investment made into ELSS is exempted from tax under section 80C (maximum of Rs 1,50,000). This can help you save tax upto Rs 46,000 in a year.
- You would need to pay 10% LTCG tax if applicable whenever you withdraw after 3 years which is still lower than FDs where tax is upto 30% of interest earned.
In general, ELSS schemes are very popular amongst salaried people as they offer significant tax savings with good return benefits. Buying ELSS at a time where market is down can help you increase returns and save tax at same time.
Get ELSS suggestions here or contact us for ELSS related queries.
Download the app now by clicking on Google Play link below. Learn everything about mutual funds on Fintra app.
