save-tax

Save Tax

What is ELSS?

ELSS (Equity-linked Savings Scheme) is a special kind of mutual fund that helps you to save taxes under sec 80C of income tax. In this scheme, the funds are invested in equity, and because of which the investor has the potential to earn high returns compared to Fixed Deposit and Public Provident Fund. And returns on these are tax-free. However, the returns are only taxable if the earnings are above 1 lakh.

How much tax can I save?

It depends on the tax bracket an individual belongs to:

  1. If you are in the 5% tax bracket, you can save up to Rs 15,000 per year in taxes.
  2. If you belong to the 20% tax bracket, then you can save up to Rs 30,000 per year in taxes.
  3. If you are in the highest tax bracket of 30%, you could save up to Rs 45,000 per year in tax.

Lock-in Period

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ELSS: Why wait for the year end scramble to save tax.

So the tax saving season has arrived. Here is the best solution for your tax saving woes which is ELSS!

Equity Linked Savings Scheme are one of the most popular tax saving investment options among other tax saving option under SEC 80C. You might be going through the last minute rush for tax saving around Jan-Feb each year. Most of the people get easily distracted by just looking at ‘tax saving’ tag on investments available in the market and invest in products which don’t add enough value.

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All you need to know about National Savings Certificate (NSC)

The avoidance of taxes is the only intellectual pursuit that carries any reward.

— JMKeynes

Payment of taxes is an important duty for every Indian citizen. It helps the governments to provide us with the best infrastructure and services. Having said that, paying taxes deprives a chunk of our gains. To prevent this, we normally choose saving schemes that allow tax deductions. Our topic of discussion is one such instrument that is known for its tax benefits: National Savings Certificate (NSC).

This is an instrument provided by the Government with the objective to encourage savings, allow tax exemptions, and ensure definite returns during retirement.

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