Are You Done With Your Tax Saving Plans for 2017-18?
It might sound strange to you that we are asking you to plan your taxes at the beginning of the financial year. But it’s all for your benefit only! There is a saying that goes, “Let our advance worrying become advance thinking and planning.” This means that instead of worrying about your taxes at the year-end, you must begin your planning now to gain maximum advantage and highest deduction.
ELSS, i.e., Equity Linked Savings Scheme, is a mutual fund plan that provides tax deduction up to an amount equal to Rs.1.5 lakh on the gross taxable income and helps in reducing the tax burden to a great extent. Not only this, ELSS is a programme that falls in the equity asset class and has investments in the equity shares and stocks across different sectors and companies, which helps it to generate capital appreciation in the long run. Accordingly, by making a tax saving plans in the mutual fund category, you not only save on your taxes but build a huge wealth for your financial future.
Why Should One Start Planning Taxes Now?
It is quite common to every one of us that we go for tax savings at the year end and take a decision in hassles which results in nothing except reducing taxes. But when we have the opportunity to make several other advantages from the tax-saving solutions, then why do we miss it?
Tax deductions are provided on such investments which are made in the particular financial year. So whether you make them now or later, they have the same effect. The matter of concern is the benefit we may avail by investing now. Being equity-based investments, the ELSS funds provide high growth in the capital that helps in gaining the long-term financial goals. The SIP plans are the best mode to start investing in the ELSS Funds because of the several benefits attached to them.
Benefits of Investing Early in ELSS SIPs-
- Tax Saving with Capital Appreciation - The ELSS mutual funds provide the tax saving benefits to the investors and help them to reduce their tax liability. Apart from this, the ELSS funds also tend to generate huge returns in the long run and help in accomplishing the long-term investment goals.
- A Financially Secure Future - By investing in the ELSS mutual funds for a longer tenure, one can assure high yields on their capital and create riches in the future. This helps one in gaining financial stability in order to attain the benefits in the long run.
- The Rupee-Cost Averaging - The SIP investments provide the most beneficial advantage to the investors, i.e., reducing the cost of investing. When the SIP is done on a regular basis and different dates, the units allotted are always varying due to which the average cost of investment is reduced.
- The Power of Compounding - The income earned on the ELSS investments are generated on the compound rate, which means one gets interest on interest and accumulates a huge sum of money. Due to the three years lock-in period, the investors cannot redeem the fund before three years, and this is ultimately beneficial to earn tremendous growth on the investments.
- A Systematic Approach to Saving - With a SIP in ELSS mutual funds, you will gain the habit of saving and investing regularly which in addition shall provide you with the benefit of tax savings.
Accordingly, by taking the best advantage of the several benefits of ELSS tax-savings funds, you can let your money grow at a rapid pace and save taxes along side. Instead of waiting for the year end you must make the most of the tax-saving funds right now.
At MySIPonline you can calculate your total tax liability as per your income, and plan your taxes for this financial year in an easier way. Furthermore, our financial advisors will help you in planning your taxes easily and invest in the best-suited ELSS Fund. Get associated with us right away and avail maximum benefits and successful investment.
- LTCG Tax Is Not As Negative As it Seems; Here’s Why?45594 min read Jan 01, 1970
- Sensex Plunges Over 1000 Points; Should You Buy or Hold Your Investments for Correction?46343 min read Jan 01, 1970
- Sensex Dives Nearly 840 Points: Things to Consider and Experts’ Take47343 min read Jan 01, 1970