Nov 26, 2016 2 min read

ELSS + SIP — A Secret to Tax Saving

Tax management is the most important point of concern as no one wants to give money to the taxman. Read this blog to know the secret of saving on taxes.
Do you know the secret of saving taxes? Have your ever tried searching for an alternative to managing tax with efficiency? If not, then you are missing out something very important. If you want to plan your taxes for the assessment year 2017-2018, we have the best solution for you. Read this blog to get the complete knowledge on tax saving.

Taxation is never liked by anyone, but we all have to deal with it because it is a statutory requirement which imposes a penalty in case of non-adherence. Generally, we look for alternatives which can be used to save on taxes but fail to determine the best ways. Moreover, if we become ignorant about how we can save taxes, it would cost a lot of money. So it is quite important to make a plan in order to manage the taxes and reduce tax liability.

Section 80C of Income Tax Act provides one of the most popular ways of savings taxes up to 1.5 lac per year. By investing the funds in tax-saving instruments, one can reduce the tax burden for the year by availing exemption under the law. As per the tax brackets, one can save anywhere between Rs 15,000 to Rs 45,000 in taxes per year. So instead of looking for different options, make the correct choice of investing in ELSS now.

ELSS(Equity Linked Saving Scheme) is a type of diversified equity mutual fund which qualifies to get exempted from taxes under Section 80C. The invested amount, returns generated and capital gains, all are fully exempted from the tax bracket. Furthermore, being an equity scheme, it generates long-term capital appreciation. Hence, it is worthwhile making an investment in ELSS to generate wealth and save taxes.

Now, apart from having an option for managing the tax liability, it is important to follow the right path. For that, ELSS is the best option to make a worthy investment in order to reduce the tax liability and SIP(Systematic Investment Plan) the right path. Investments in these can offer remarkable returns if they are made with due care and high efficiency.

SIPs are the best way to make an investment in the mutual fund schemes in order to generate high-yielding returns over a period of time in a systematic manner. They are considered to be the wealth-generating way of investing for the long-term. By investing a small amount of money at the regular interval, one can start building wealth for one’s future. And when SIPs are made in ELSS, they provide the dual benefits of tax savings and higher profits.

With rupee-cost averaging and compounding benefits, SIP ensures greater benefits in a systematic manner, and ELSS being a tax-efficient tool helps to manage the tax liability. Hence, we recommend the investors to grab the best opportunity of investing in ELSS now to save your tax liability for the financial year 2016-17. You still have time, make the most of it!

We, at MySIPonline, have a variety of schemes which fall under the ELSS category and provide a tax-saving solution. You can start your SIP in ELSS with us right away to create a huge wealth for your future. Our financial advisors would assist you in taking the right decision and making the best choice. Start your investment as well as tax planning before the year 2016 ends.