Feb 20, 2017 3 min read

Tax Planning Simplified! Start Investing in ELSS Funds

For those looking for tax-saving solutions by planning in an efficient manner, read this blog to know what’s new this time!
The time left for tax planning is on the verge of ending soon. March 2017 is approaching, and we need to set ourselves ready with the tax-filing requirements. But what about your tax-saving plans for this year? Do you have 80C investments? Or you are still looking for better options! If yes, then we have designed the most effective platform for your tax planning this year.

Tax Planning: The Way to Manage Your Tax Liability

Planning is considered the best way to give an efficient start to an objective. When it comes to taxes, one needs to think twice before making the plan. The purpose of tax planning is reducing the liability of taxes payable by an individual to the taxman. No one desires to lose the hard-earned money and thus want a straight-forward solution for the same. Thus, we have provided a newly developed tax planning feature on our website, where one can easily calculate the tax liability and find an instant solution to avail exemption on the same.

How to Save Taxes?

Once the planning part is done, next comes the part of finding the best avenues for tax savings. By using the tax calculator, you would be able to compute your tax liability and the very next step would be to make a better investment in order to save on your taxes. The ELSS Mutual Fund investment, which provides tax exemption under section 80C of Income Tax Act, is the best solution for the investors. By providing exemption up to Rs.1.5 lac on income, it lets everyone to reduce to total tax payable. Thus, you must opt for the ELSS investments for your portfolio to enjoy maximum benefits.

Why Opt for ELSS Funds?

ELSS, i.e., Equity Linked Saving Scheme is a mutual fund plan which falls under the tax-saving instruments as per the provisions of Income Tax Act. It invests the funds in the equity and equity-related securities with a lock-in period of three years and provides tax exemption under Section 80C. Along with tax savings, it aims to enhance the wealth of the investors, and thus the portfolio of these schemes are designed by entailing the investments in high-growth sectors and companies. Here are some of the reasons to invest in ELSS:

Exempt-Exempt-Exempt Model:

The ELSS investments fall under the EEE model of Income Tax Act. According to this, the amount invested in these funds, the income generated in the form of dividend or interest(if any), and the capital gain attained by the investors at the time of sale of these funds are fully exempt from the tax bracket. Hence, the investors save taxes not only in the first year of investments but after that as well.

Tax-Saving with Wealth Building:

The investments made by ELSS funds are in the equity stocks and shares of companies. Accordingly, the investors are benefited with the returns fetched on them in the long run. The lock-in period of ELSS is three years according to which the invested capital gets considerable time to grow. Moreover, the investors are advised to stay invested in these ELSS schemes for a long tenure in order to attain the highest growth on their capital and earn a huge wealth for the future.

With the relaunch of our website with upgraded features, we have provided the best way of planning taxes. The financial year is ending soon, and thus it is a must for everyone to be confirmed about their tax-saving investments in order to avail the exemption under the Act. So, in case you have not planned your taxes for this year yet, then you must give them a start right away at MySIPonline. We assure you will appreciate the newly designed tax planning solutions.