Financial goals can be tax saving, wealth creation, . Retirement planning, children’s education, etc. For investors having a financial goal of saving taxes, amcs . In india offer mutual fund schemes known as equity linked savings schemes (elss).Elss falls under . The category of equity mutual funds and hence a major portion of its aum is . Invested in equity or equity-linked instruments.Elss is also called tax saving mutual fund, as investments .
Made by Individuals and Hufs
Made by individuals and hufs in these schemes are eligible for tax deductions under the . Section c of income tax act. These are the only open-ended equity mutual funds with . A lock-in of years.What are the features of elss?Elss schemes would invest at least percent . Of its aum in equity and equity-linked securities (in accordance with equity linked saving scheme, . Notified by the ministry of finance).
While Investing in Equities, Elss
While investing in equities, elss schemes would diversify the . Total investments with several equities in different market caps, sectors and themes (as per regulations, . Elss schemes cannot have more than percent of its nav in the equity shares dentist database and . Equity related instruments of a single company)these equity mutual funds have a fixed lock-in of . Three years with no maximum tenure.You can claim for tax deductions by investing in elss .
Schemes Under the Section C
Schemes under the section c of income tax act, and save up to ₹,, in . A year depending on the tax bracket you fall in.What are the tax it happens that at the prototyping stage benefits on . Investment in elss?As mentioned japan data above, you can claim for tax deductions by investing in elss . Schemes under the section c of income tax act, and save up to ₹,, in . A year depending on the tax bracket you fall in.
Example – if You Fall
For example – if you fall . Under the tax bracket of %, then in a year you can save taxes of . Up to ₹, by investing ₹,, in a year. (₹,, x % = ₹,)the tax . Deduction under section c will be cumulative for elss and other tax saving investments like . Ppf, nsc, etc.On redemption of units after the lock-in of years, long term capital gain .