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Making investment planning for tax exemption, then ELSS is a great option, know details here

At the beginning of the new financial year, every sensible person starts investing for tax exemption. With this, you will not face any kind of trouble at the end of the year and you will be able to achieve your investment goals easily by the end of the year. Investors use Section 80C of Income Tax to get tax exemption. Under this section, taxpayers get tax exemption on investment of Rs 1.5 lakh.

But, today we are going to tell you about another tax exemption method apart from 80C investment option. This scheme is ELSS. In the last few years, this ELSS has emerged as a great investment option among the taxpayers. So let’s know about the advantages of investing in ELSS-

Benefit of shorter lock-in period

Let us tell you that in the last few years, interest in investing in ELSS is increasing among the people because it is such a mutual fund investment in which the investor gets the benefit of tax exemption by investing money. On investing in this scheme, you get a lock-in period of only 3 years instead of five years in the option of getting tax exemption under 80C. You can withdraw the money invested in this scheme only after 3 years. Whereas in PPF scheme, you have to invest money for 15 years.

get more returns

ELSS is one of the most popular mutual fund investment options as it gives maximum returns to the investors. The reason for higher returns is that the money is managed professionally in this. Professional people invest money in the same place, from which there is a possibility of getting higher returns. So far, in 10 years, investors have got returns of more than 12 percent.

Get the benefit of so much tax exemption

Let us tell you that by investing in ELSS mutual fund, you can save money up to Rs 46,800. If you want, you can invest more than 1.5 lakhs but, the benefit of tax exemption will be available only up to Rs 1,5 lakhs. Along with this, also keep in mind that you will have to pay tax on capital gains more than 10 percent.

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