1.5 lakh per year by investing in ELSS funds. If you’re looking for tax saving mutual funds look for an ELSS mutual fund or Equity Linked Savings Scheme. *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. However, the Union Budget of India of 2017 proposed that RGESS be completely phased out by 2018 … Equity Linked Savings Scheme or ELSS Funds is an open-ended Equity Mutual Funds that help you save and provide an opportunity to grow money. It is a diversified equity mutual fund that helps you to save tax as per the current tax laws with the growth potential of equities. An Equity Linked Savings Scheme (ELSS) is an open-ended Equity Mutual Fund that not only helps you save tax, but also gives you an opportunity to grow your money. about EQUITY LINKED SAVINGS SCHEME Tax Saving + Potential Wealth Creation. ELSSes can be invested using both SIP (Systematic Investment Plan) and lump sums investment options. What is ELSS? Short title and commencement. One such scheme which offers tax benefits up to Rs 1,50,000 per annum under Section 80C of the Income Tax Act is the Equity Linked Savings Scheme or ELSS. These are tax-saving mutual funds that you can use to save income tax up to Rs 1.5 lakh under Section 80C. Income Tax Department > Tax Laws & Rules > Rules > Equity Linked Savings Scheme, 2005 Income Tax Department > All Rules > Equity Linked Savings Scheme, 2005 Choose Rules: Rule No. 80C of the Indian Income Tax Act. Equity Linked Savings Scheme funds (ELSS) are tax-saving mutual fund schemes primarily invest in stock market, ideal for investors who plan to generate wealth and save taxes. It was announced in the Union Budget of 2012-13 and extended in 2013-2014. The advantage ELSS has over other tax Saving instruments is the shortest lock-in period of 3 years. Equity Linked Savings Scheme (ELSS) is a type of mutual fund scheme that invests in equity-related instruments and helps you claim your investment in an ELSS for an income tax deduction. ELSS funds invest more than 80% of its corpus in equities and equity-related instruments. Equity Linked Savings Scheme (ELSS) The ELSS or Equity Linked Savings Scheme is the only kind of mutual funds that are covered under Section 80(C) of the Income Tax Act, 1961. Equity Linked Saving Scheme (ELSS): The most popular and rewarding form of tax saving investment, which incidentally also carries the shortest lock-in period, is ELSS. These mutual fund plans stands out from other schemes with its high return potential and partially taxable nature. Among the many instruments available for in the market, Equity-linked savings scheme (ELSS) are one of the preferred options. Qualifies for tax exemptions under section u/s. The difference here is that investment in ELSS is linked to equity or in other words, stock markets. Definitions. More. Rule - 2. With the financial year coming to a close and sentiments towards equity markets turning positive, investments in ELSS are on the rise. An ELSS comes with a statutory lock-in period of 3 years and qualifies for a tax exemption under Section 80C of the Income Tax Act which allows a maximum tax exemption of Rs. It also suggested that the government allow debt linked savings schemes (DLSS), similar to the equity linked savings schemes (ELSS), which are tax-saving plans, the Times of India mentioned in a report. Investors looking to save tax can consider equity-linked saving schemes (ELSS) with a three-year lock-in period. ELSS funds have a lock-in period of three years. An Equity Linked Savings Scheme (ELSS) is an open-ended Equity Mutual Fund which gives following advantage-Opportunity to grow your money. They offer tax benefits under the Section 80C of Income Tax Act 1961. 1 lakh, ELSS mutual funds offer tax benefit. A Equity Linked Savings Scheme, popularly known as ELSS, is a type of diversified equity scheme which is close-ended, with a lock-in period of three years, offered by mutual funds in India. The Rajiv Gandhi Equity Savings Scheme (commonly referred to as RGESS), is a tax saving scheme announced in the 2012-2013 Union Budget of India, aimed at first time retail investors. If you have not exhausted the Section 80C … These mutual funds … In ELSS,the majority of funds are invested in equities. 1,50,000. The scheme is popular as it has the shortest lock-in period among all tax-saving schemes under Section 80(C). An Open-ended Equity Linked Savings Scheme with a statutory lock in of 3 years and tax benefit. Equity Linked Savings Scheme (ELSS) Equity Linked Saving Scheme Fund is nothing but a tax-saving Equity Mutual Fund. Let’s see what happens to your money when you invest in these schemes. Other than traditional investment options, you can consider investing in equity as an asset class with ELSS (Equity Linked Savings Scheme), which is an equity mutual fund with a 3-year lock-in. Environment . The latter part, i.e. Sometimes, when we focus on a single benefit, we may overlook a big opportunity. Equity-linked saving scheme (ELSS) is like any other mutual fund scheme which includes equity-linked tax saving securities where returns are managed with tax-saving preferences of investors. Unlike all other types of tax saving investments, ELSS has a lock-in period of just 3 years, which is the lowest! and come with a host of benefits. ELSS is a type of diversified equity mutual fund where most of the corpus is invested in equity and equity-related products. Rajiv Gandhi Equity Saving Scheme or RGESS was a mutual fund along with tax advantage that was offered by the Government of India to encourage flow of savings of small retail investors in the domestic capital market. ELSS is a diversified equity mutual fund where the investors enjoy the dual benefits of capital appreciation as well as taxation benefits. L&T Mutual Fund, one of India’s top asset managers with total AUM of Rs. One of the most popular Sec 80C investments is in tax saving mutual funds or Equity Linked Savings Scheme (ELSS). What is ELSS Mutual Fund. A mandatory lock-in period of three years is the main feature of ELSS. Long-term capital gains from these funds are tax free in your hands. Equity Linked Savings Schemes (ELSS) is also a form of savings scheme where you in invest in mutual funds but with the same tax benefits. It invests primarily in equity or equity related instruments. The scheme is aimed at encouraging the flow of savings of … The Equity Linked Saving Scheme is the mutual fund that has the lock-in period of three years from the date of investment. Equity Linked Savings Scheme ( ELSS) Equity-linked savings scheme is a type of equity mutual fund that comes with the double benefit of tax saving and wealth creation. Worth mentioning here is that it has been a long standing demand by most of the fund houses as both MFs and ULIPs are investment products and invest in securities. This means that if the systematic investment plan or SIP starts then each of the investment gets locked for three years and the investor cannot withdraw anything before the maturity of the mutual fund i.e. Text Search: 9 Record(s) | Page [1 of 1] Rule - 1. Tax savings of Rs. ELSS funds have a lock-in period of 3 years and invest a majority of their portfolio in the stock market. ELSS are usually termed as tax saving schemes since they offer an exemption of upto INR 1,50,000. Named after Rajiv Gandhi, the sixth Prime Minister of India, the scheme was announced by the finance minister, P. Chidambaram, on 21 September 2012. That’s why these MF funds are also known as tax saving mutual fund schemes. Equity Linked Savings Scheme (ELSS) is a kind of mutual fund scheme that helps in saving taxes under Section 80C of the Income Tax Act and invest equity related instruments to generate high returns. All about ELSS | Equity Linked Savings Scheme | Tax Saving Mutual Funds. An Equity Linked Savings Scheme (ELSS) is a mutual fund equity scheme, that offers wealth creation over the long-term along with tax benefits under Section 80C of the Income Tax Act, 1961. Investments of up to 1.5 Lac done in ELSS Mutual Funds are eligible for tax deduction under section 80C of the Income Tax Act. Rule - 3. ... Don't Miss It. Features of ELSS Mutual Funds. The same applies to the choice of your tax saving investments; so don't just save tax, but aim to create wealth by investing in an Equity Linked Saving Scheme (ELSS). the ELSS tax benefit, is what sets ELSS apart from other equity-oriented mutual fund schemes. three years. However as per Finance Act 2018 LTCG on ELSS (equity oriented) in Excess of Rs 1 lakh is taxable @ … ELSS comes with a lock-in period of 3 years from the date of investment, which means that … When it comes to investing in India, one instrument that is gaining immense popularity is the Unit-Linked Insurance Plan (ULIP). An equity linked savings scheme (ELSS) is a type of mutual fund which invests the majority of its total assets in equity and equity-related instruments. ELSS has a lockin period of 3 years from the date of investment i.e. These are managed by professionals and experts and hence result in greater returns as compared to other tax-saving investments.. Taxpayers can benefit from up to Rs. ELSS is a type of Mutual Fund which allows you to claim for income tax deduction. This is an equity diversified fund and investors enjoy both the benefits of capital appreciation, as well as tax benefits. One such way is the ELSS (Equity linked savings scheme). It qualifies for tax exemptions under section 80C of the Indian Income Tax Act, 1961. Tag: Equity Linked Savings Scheme. An ELSS or Equity Linked Savings Scheme is just like any other mutual fund scheme. SBI’s CSR package in Nagaland. 46,800 mentioned above is calculated for the highest income tax slab. Firstly, any amount up to Rs.1,50,000 invested in ELSS is exempted from income tax. Firstly, any amount up to 1.5 Lac done in ELSS funds qualifies for tax exemption under Section 80C Income... 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