Does ELSS Funds Suit Your Tax-Saving Requirement?
Tax time is all here, and everyone is busy in calculations related to tax liabilities and total taxable income. We believe you must have made the best tax-savings plan this year to save on your tax amount in the Assessment Year 2017-18. But, have you availed the benefit of Section 80C investments like ELSS Funds? If not, then you have a better opportunity to save much more on your income this year. If you are in doubt and need to know whether it is suitable for you or not, this blog will help you get complete understanding.
Income Tax Act, 1961, has set the bars for the taxpayers which have well explained the rate of tax payable on income above a certain limit. The assessee who comes under the tax bars is required to pay that particular amount of taxes on their income. However, there are certain provisions which are being framed under the law to provide the tax-saving ways in a legalised manner. Section 80C is one of such ways which provides with the solution to save on taxes by reducing the total taxable income. Yes, you heard that right. Under Section 80C you can save an amount up to Rs.1,50,000 on your net taxable income which further helps in reducing the tax liability.
ELSS Investments: Providing 80C Exemption
ELSS, i.e., Equity Linked Saving Scheme is the mutual fund plan which provides the benefit of tax savings to the investors. By investing an amount of Rs.1.5lac in these funds, you can easily avail the tax exemption under the Act. Moreover, apart from providing the tax-saving benefit, ELSS also helps in providing capital appreciation to the investors. It has investments in the equity stocks and shares of the companies which endeavour to provide high growth to the invested capital and help in creating wealth for the future.
The lock-in period in ELSS investments is just three years as compared to five and fifteen years in other 80C tax-saving instruments. Thus, one can avail amazing benefits from this fund to gain maximum profits along with tax savings.
Is ELSS Suitable for You?
This is the last month of this financial year and you must be looking for tax-saving tools in order to reduce your tax liability. Equity Linked Saving Scheme can be highly beneficial for you and provide you with the extraordinary advantages. If you have not yet made any 80C investments and want to save on more taxes, then you must consider the ELSS Mutual Funds for your investment portfolio.
You can calculate the net amount of tax liability for the current year using our online tax calculator and fetch an exact sum of money on which you need further savings. This calculator will provide you with the solution and best recommendations as well to make your investment in best ELSS mutual funds schemes. Moreover, you will find the online investing option therein to start your investment immediately through SIP or lump sum. Hence, you can easily find the most effective and result-oriented strategy to help you save your tax liability.
MySIPonline and its team have made efforts to provide with the best tax-saving investment opportunities to the investors to plan their finances easily. If you need any assistance for mutual fund investments or financial planning, then you must avail our free advisory services from Certified Financial Advisors(CFAs).
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