ELSS Funds: A Recipe for Saving Tax & Creating Wealth
You are lucky that you are reading this blog before time passes by. A good start to tax-saving plan can allow you to be successful without many efforts. If you haven’t tasted the benefits of investing in ELSS funds, then you must not miss out this time. Read below and start before the time runs out of your hands to save more on your taxes. It will hardly take five minutes to read.
The time is passing ahead, the year is turning to end soon, and you must be in the state of panic about filing your Income Tax Return (ITR). You might be planning to approach your financial advisor, or CA, to know the different ways which can help you reduce your tax liability. You might be in a question that how you could reduce the tax loads to the minimum. But yes, you can minimise the tax burden by adopting the various ways of investing and the best among them is ELSS. The Equity Linked Savings Scheme (ELSS), is a category of mutual funds which allows the investors to reap the multiple benefits of investing. ELSS Mutual Funds are best known for the tax benefits they provide. Further, the advantages of investing in an equity scheme are also added to it. Most people compare them with other tax saving instruments like PPFs, NSC, FDs, etc., because they all have the similarity of providing the benefits of saving on taxes. But, ELSS stands at the top of the list if you compare its multiple benefits with that of the other tax instruments. You can avail deduction of up to Rs. 1.5 lakh on your total taxable income each financial year through ELSS. Furthermore, with providing such exceptionally great benefit, it helps you to create wealth to fulfil your future requirements. It means that you can accomplish multiple targets from a single shot. Let’s understand the benefits of ELSS more clearly:
- Tax Saving : ELSS comes with the eligibility of providing a tax deduction under section 80C of Income Tax Act of India, 1961. So, the investors can avail the reduction in total taxable income by up to Rs. 1.5 Lakh every financial year. It means, a huge tax benefit for those who put various efforts to approach the best advisor to get the maximum deductions on the taxable income as they can now effortlessly do it through investing in best ELSS funds in India.
- Wealth Creation : Apart from the primary benefit which is mentioned in the above point, you can also create wealth to achieve all your future financial requirements efficiently. Being an equity-oriented scheme, it majorly invests the capital in the equity and equity related securities of the best companies which are capable of providing exceptional growth in the future. The equity investments help these schemes to experience high capital appreciation which multiplies your invested capital into the manifold in the long-term period.
- Other Benefits : If you have any doubts that why should you choose ELSS when the other tax instruments like PPFs, FDs, NSC, etc., are also providing tax benefits and capital growth, then look at the table below which shows the superiority of ELSS funds against all other similar instruments:
Henceforth, you may now have a clear idea about all these instruments and understood that how ELSS is superior to all the others. Therefore, do not waste much of your time and get the best advantages of starting early. If you want to choose among the top recommended ELSS schemes by the experts of MySIPonline, then visit our page of all tax saving funds, and start grabbing the benefits.
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