23 Oct, 2019
ELSS = SaveTax + BuildWealth-1
Financial planning is of utmost importance and has become a dire necessity in modern times. Irrespective of how much you earn, it’s important to save and invest so that you can aim to achieve your financial goals. Now what if we tell you there’s a mutual fund scheme that saves tax & helps you create wealth too? Yes, you heard it right. Equity Linked Saving Scheme or ELSS is one of such scheme that helps an individual to save tax up to Rs. 46,800* u/s 80C of Income Tax Act and also invest your money with a potential to generate wealth. Here are 2 benefits of investing in an ELSS scheme:
1. Tax Exemption
The primary goal of an ELSS Schemes is to help taxpayers save some money. As stated earlier, with ELSS an individual can claim tax benefits of Rs. 46, 800* with an annual investment of up to Rs. 1.5 lakh. Even though the Section 80C of Income Tax Act only allows tax exemption worth Rs. 1.5 lakhs, there is no limitations of investing in an ELSS scheme.
2. Low Lock-in
ELSS has a lock-in period of three years. This is one of the product with shortest lock-in period among all the tax-saving instruments.
Now that you are aware of advantages of ELSS, let us introduce you Axis Long Term Equity Fund (this is an open ended equity linked saving scheme with a statutory lock in of 3 years and tax benefit) So if you want to save tax while aiming to build wealth, invest in Axis Long Term Equity Fund now.
*As per the present tax laws, eligible investors (individual/HUF) are entitled to deduction from their gross income of the amount invested in Equity Linked Saving Scheme (ELSS) up to Rs.1.5 lakhs (along with other prescribed investments) under section 80C of the Income Tax Act, 1961. Tax savings of Rs. 46,800 mentioned above is calculated for the highest income tax slab. Investors are advised to consult his/her own Tax Consultant with respect to the specific amount of tax and other implications arising out of his/her participation in ELSS.