Investors are often on the lookout for good investment opportunities that can help them accumulate wealth, fetch regular and significant returns, and also help them save tax. This is because the more they can save on taxes, the more earnings they can take home. This is why tax planning becomes absolutely essential. Section 80C provides numerous tax benefits to investors with its varied tax-saving investments. Although these tax-saving investments offer tax deductions, they prove slightly incompetent when you take into account the lock-in period and the average returns provided by these investments. Individuals investing in mutual funds often shy away from mutual fund investments due to tax on mutual funds. Enter ELSS tax saving mutual funds, also known as Equity-linked Savings Scheme. What are ELSS funds? ELSS mutual funds are referred to as tax saving mutual funds, owing to their tax-saving attributes. ELSS funds invest a minimum of 80% of their assets in equity and equity-linked securities. Investments in these mutual funds are eligible for a tax deduction of up to Rs1.5 lac u/s 80C of the IT Act, 1961. An investor can save up to Rs 46,800 p.a. by investing in ELSS ...
