There are two aspects of taxes that every financially smart individual should be aware of – tax filing and tax saving. Now that we are done with tax filing, it’s time to have a look at our tax saving plan so that we are well prepared for the next tax filing season.
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Tax Saving
What do we mean when we say you can save on taxes? We mean Section 80 of the Income Tax Act. Yes the Section 80 C of the Income Tax Act allows for tax deductions for various investments. And one of these is the Equity Linked Savings Scheme. It is the only type of mutual fund that is eligible for tax deduction.
What are ELSS Funds?
ELSS Funds of Equity Linked Savings Schemes Funds are a type of mutual fund that invest majority of their corpus in equity or equity-linked instruments. They come under Section 80C and allow for tax exemption of upto INR 1,50,000 of your annual taxable incomes. The funds allow for diversification in your portfolio by investing across different market capitalisations. The fund has a lock-in of three years and no maximum investment time, allowing one to stay invested as long as they want.
Benefits of Investing in ELSS Funds –
- Tax Benefits – The most popular benefit of investing in ELSS funds is tax saving. Eligible of tax deductions upto INR 1,50,000. This makes for an ideal tool in your tax saving plan.
- Diversification – From an investment point of view the fund adds diversification to your portfolio as it invests across all market capitalisations.
Where To Invest?
WhiteOak Capital has launched a Tax Saver Fund NFO which is targeted at investors looking for long term capital appreciation coupled with tax benefits. With a lock in of three years this NFO will be ideal for you if tax planning is on your mind now and will also strengthen your portfolio. Visit The App Now To Invest.
