How Much Can I Save Tax in ELSS?
Enter Annual Income
Five Lakhs
You will save ₹ 7,500 if you invest ₹ 1,50,000 in ELSS
Save tax ₹ 7,500
ELSS funds is a category of mutual funds which invests predominantly in equity and equity-related securities. These funds park at least 65% of the total assets in the equity shares and securities across the market cap. As per the Section 80C of the Income Tax Act, 1961, several investment instruments are being listed out which provides a deduction from the total taxable income of the assessees. The ELSS Mutual Funds is one of those listed instruments in Section 80C that aims to provide the same benefits to the investors. By investing in these tax saving SIP, one can claim a deduction from the total taxable income of an amount up to Rs.1.5 lakh.
So Equity Linked Savings Scheme (ELSS) is a good option for new as well as experienced investors.ELSS Schemes assure long-term returns alongside tax deduction advantage. This category doesn’t have any restriction on maximum investment amount and age limit.
| Fund Name | Latest NAV (₹) | Return (%) | Double Money In | 1 Lac Grew To (₹) | |
|---|---|---|---|---|---|
|
Mirae Asset Tax Saver Fund (G)
Average risk | ELSS
|
17.38 | 22.72 | 3Y 5M | 1.85 L | Invest |
|
Aditya Birla Sun Life Tax Relief 96 (G)
Moderately High risk | ELSS
|
31.15 | 15.95 | 4Y 1M | 1.56 L | Invest |
|
Axis Long Term Equity Fund (G)
Moderate High risk | ELSS
|
43.49 | 15.44 | 4Y 1M | 1.54 L | Invest |
|
L&T Tax Advantage Fund (G)
Moderate risk | ELSS
|
52.9 | 15.24 | 4Y 10M | 1.53 L | Invest |
|
ICICI Prudential Long Term Equity Fund (Tax Saving) (G)
Moderately High risk | ELSS
|
370.68 | 14.43 | 4Y 9M | 1.50 L | Invest |
Enter Annual Income
Five Lakhs
You will save ₹ 7,500 if you invest ₹ 1,50,000 in ELSS
Let’s quickly see how Tax Saving Funds (ELSS) rules over other Tax Saving Options under Section 80C
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After in-depth research and analysis, our experts suggest the best ELSS fund to you keeping in mind your investment objective.
Once you invest, you get a report as an investment proof which you can use for saving taxes under Section 80C.
Get a list of the top tax saving funds which can offer you dual benefit of high returns and tax savings.
Investing in ELSS funds is one of the best tax saving options providing tax deduction under Section 80C of the Income Tax Act. The tax saving plans are the best mutual fund investment plans which provide higher returns on the invested capital along with saving income up to Rs. 1.5 lakh to avail reduction in the tax liability. With a lock-in period of three years and investments made in the equity-related securities, These funds tend to provide the maximum benefits of earning wealth over time. Due to the maturity period of three years, the invested capital gets enough time to get enriched. To gain better understanding and know how ELSS funds provides higher earnings, read the content further.
Equity Investments Providing Capital Growth - Being a category in the equity asset class, ELSS funds provide the benefits of equity investments in the long run. As we know that equities generate tremendous growth for the investors, in the long term, the funds also provides the same benefit. It helps in earning huge wealth for the investors and appreciates the capital in order to attain the long-term investment goals. After beating market volatility, the schemes in the tax saving plans generate higher returns.
ELSS funds are the ones that mainly tend to provide the benefit of claiming a deduction on the income. While selecting these schemes, one needs to be extra careful as several provisions and factors need to be kept in mind. Your must have an in-depth study of each and every tax saving option available to you. Don’t just go by mouth publicity. The reason being is that the ELSS mf suitable for one person may not have the same efficiency for the other. Thus, it is essential that before investing, one must carefully study the market position of all the tax saver schemes. The expert's team of MySIPonline shall provide you with the best benefit for the same. They will guide you about which Tax Saving scheme is best suited to your requirement and why you should opt for them.
The Equity Linked Savings Scheme (ELSS) is a good option for new as well as experienced investors who want to utilise tax saving benefits and make big corpus side by side. ELSS Funds assure long-term returns alongside tax deduction advantage. This category doesn’t have any restriction on maximum investment amount and age limit, so any investor can utilise the benefits in these schemes and start investing as soon as possible. Here are some important points you should know before investing in an ELSS scheme.
| S.N | Investment Under 80C | Returns | Lock-in Period | Tax on Produced Returns | Last Year Returns |
|---|---|---|---|---|---|
| 1. | ELSS Funds | 15% to 18% | 3-years | Partially Taxable | 13.62%(Last 3-Yr) |
| 2. | Public Provident Fund (PPF) | 7% to 8% | 15-years | Tax-Free | 7.6%(Jan-Mar 2018) |
| 3. | Fixed Deposit(FD) | 6% to 7% | 5-years | Taxable | 7% to 7.7%(Last 1-Yr) |
| 4. | National Pension Scheme (NPS) | 8% to 10% | Withdrew After Retirement | 40% is Taxable | 9.5%(Last 3-Yr) |
| 5. | National Saving Certificate (NSC) | 7% to 8% | 5-years | Taxable | 7.6%(Jan-Mar 2018) |
ELSS Funds under Section 80C of Income Tax Act, 1961 is proposed to provide tax saving benefits to an individual and HUFs (Hindu Undivided Families). If the income is invested in defined avenues, then they can get a claim up to Rs 1.5 lakh as a deduction from the total income in a financial year depending upon their tax slabs. With investment in defined investment/expenditure, an individual and HUF can reduce the total taxable income and the total payable tax. Section 80C has a long list of options such as ULIP, Life Insurance, Annuity Plan, PPF, NSC, Post office term deposit of 5-years, fixed deposits for 5-years and Senior Citizen Savings Schemes. For the investors, how to save tax query has been resolved with such a list of options offering tax deduction benefits. At present, most of the investors are considering tax saving mutual funds (ELSS) online as the best tax saving option as it provides comparatively higher returns with lowest lock-in period among all other options falling under Section 80C.
As per the income tax slab, the assessees having income more than Rs.2,50,000 are required to pay taxes as per the rate applicable to them. Accordingly, the investors who come under the taxable slab and want to reduce their tax liability, should park their money in the ELSS funds. Furthermore, if you need to calculate your taxability, then you can use our ‘Tax Calculator’ which will help you in computing the exact sum payable for taxes and will also help you in planning how to reduce it. Investments in ELSS Scheme can be initiated with just Rs.500 and thus, investors have the benefit of starting SIP with a small sum of money and gain tremendous income.
The online investment is the best way to start investing in the best elss funds. We provide a wide range of online tools and solutions that will help you in making simplified investment. You can opt for the tax calculator, tax planning, best ELSS Mutual Funds and other solutions to make the right choice and start online investment in mf. The online SIP is further an additional solution that will simplify your investment journey and let you make better earnings with tax savings.
To provide you with the best-investing options in ELSS funds we are working day in and day out. You can trust our site as we include only those plans which are really worthy. Our experts have come up with the chart-buster schemes like, Axis Long Term Equity Fund (G), Reliance Tax Saver (ELSS) Fund (G), etc.
Must Read : Top 5 Tax Saver Mutual Funds To Invest in 2018
