Tax Saving Plan! Do Not make It Your Last Minute Mystery
Do you know how the last minute rush in the tax planning can affect your financial stability? It can badly influence your current and future financial condition. Yes, an early plan to tax saving is a better approach to save more money which further can be used for various other purposes. But, the last minute plan never works efficiently. Rather, it puts you in a lot of panic and pressure resulting into inappropriate planning. So, how do you want to face the financial year end? Like a last minute runner or a pro-efficient planner.
Of course, no one will like to jump into the dig knowingly. In the same manner, when it comes to tax planning, people generally start making it from the beginning of the year itself. So, without wasting more of your valuable time, let’s know how efficiently you can deal with your income tax returns filing by planning early.
There are various ways through which you can save on your taxable income which include, Public Provident Fund (PPF), National Savings Certificates (NSC), Fixed Deposits (FDs), Equity Linked Savings Scheme (ELSS), etc. And the best among these is the ELSS. Yes, because it has superior benefits which helps you not only in reducing tax liability but also earning fantastic returns on your investment through the equity exposure. Moreover, it allows you to choose to travel the journey of tax-saving in either of the ways as per your suitability which are Systematic Investment Plan (SIP), and Lumpsum. To know how ELSS is superior to the other tax saving instruments, let’s see the table below:
Benefits of Equity Linked Savings Scheme (ELSS)
- Lowest Lock-in Period - ELSS provides you with the benefit of least lock-in period as compared to the other tax saving instruments available in the market. Investment in ELSS has a lock-in period of three years after which one can redeem the money as and when required. Contrary, the other instruments such as PPF, NSC, FDs, etc., have lock-ins of 15, 10, & 5 years respectively.
- Tax Benefits - You can also avail the tax benefits of up to Rs. 1.5 lakh on your total taxable income under section 80C of the Income Tax Act India, 1961. It is the maximum benefit which you earn on your taxable income. You must invest in an appropriate ELSS scheme to get the best advantages and save more tax.
- Potential of Wealth Creation - When you invest your money in ELSS funds, you automatically put it for wealth creation. There are two reasons behind it, firstly, it invests in the equities of various companies which are known for providing excellent returns in the long-term duration. Secondly, it has the lock-in period of three years which means that you have to stay invested for just three years to reap good returns in this rolling time.
- Investment Plan - You can invest in the most suitable ELSS fund through any of the plan which fits your investment requirements at the best. There are two plans, namely Systematic Investment Plan (SIP) and Lumpsum. Both have distinct features and benefits which help to attain maximum profits to the investors on the invested capital. When you invest in ELSS, undoubtedly, you save on the taxes and at the same time, your invested capital keeps growing on the basis of the market trends and avails you healthy returns over the time.
Henceforth, you have not less than a golden opportunity to make good changes in your financial life. We always suggest our clients not to wait for the right time to come because your good time starts, when you start investing for the right cause. So, don’t waste more time else you might lose the benefit of saving maximum possible tax on your income. Just wake up & take a step forward to invest your money in tax saving mutual funds today with MySIPonline. You can enjoy the benefits of investing with India’s most trusted investment platform. Start now and reap more benefits!
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