{"id":602,"date":"2020-03-27T12:35:17","date_gmt":"2020-03-27T12:35:17","guid":{"rendered":"https:\/\/myfintree.com\/blog\/?p=602"},"modified":"2020-03-27T12:35:17","modified_gmt":"2020-03-27T12:35:17","slug":"tax-savings-with-equity-linked-saving-schemes","status":"publish","type":"post","link":"https:\/\/myfintree.com\/blog\/tax-savings-with-equity-linked-saving-schemes\/","title":{"rendered":"Tax Savings with Equity Linked Saving Schemes"},"content":{"rendered":"<p><a href=\"https:\/\/myfintree.com\/tax-saving.php\"><strong>Equity Linked Savings Schemes<\/strong> (ELSS)<\/a> are Mutual fund investment schemes that help you save income tax and are also known as tax-saving funds.<\/p>\n<p>Under section 80C,of The Income Tax Act, it allows taxpayers to invest up to INR 1.5 lakh in specific securities and claim it as a deduction from their taxable income. One of the approved securities is ELSS\u2013 others include PPF, postal savings like NSC, tax-saving FDs, NPS, etc.<\/p>\n<p><span style=\"color: #993300;\"><strong><a href=\"https:\/\/myfintree.com\/tax-saving.php\">Features of ELSS Mutual Funds<\/a> <\/strong><\/span><\/p>\n<ul>\n<li>ELSS funds invest a large percentage of their portfolio in equity.<\/li>\n<li>They have a compulsory lock-in period of 3 years, which is the shortest amongst all tax saving instruments.<\/li>\n<li>You enjoy the dual benefits of capital appreciation from investments in equity along with tax-saving<\/li>\n<li>You can opt for dividend pay-outs if you wish to receive regular income or go with the growth option for capital appreciation<\/li>\n<li>ELSS Mutual Funds do not have any entry or exit load.<\/li>\n<li>Good ELSS Funds generate returns in the range of 10-12 per cent in the long run, among the highest in the tax-saving category of instruments.<\/li>\n<li>However, ELSS also comes with some risk, inherent in equity investments<\/li>\n<\/ul>\n<p><span style=\"color: #008000;\"><strong>A comparison of ELSS with other tax saving instruments<\/strong><\/span><\/p>\n<table style=\"height: 283px;\" width=\"814\">\n<tbody>\n<tr>\n<td width=\"281\">\n<p style=\"text-align: center;\"><span style=\"color: #008000;\"><strong>Name of Instrument<\/strong><\/span><\/p>\n<\/td>\n<td style=\"text-align: center;\" width=\"142\"><span style=\"color: #008000;\"><strong>Lock In Period<\/strong><\/span><\/td>\n<td width=\"155\">\n<p style=\"text-align: center;\"><span style=\"color: #008000;\"><strong>Returns<\/strong><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"281\">ELSS<\/td>\n<td width=\"142\">\n<p style=\"text-align: center;\">3 Years<\/p>\n<\/td>\n<td style=\"text-align: center;\" width=\"155\">10 -12%<\/td>\n<\/tr>\n<tr>\n<td width=\"281\">\n<p style=\"text-align: left;\">Tax Saving FD<\/p>\n<\/td>\n<td width=\"142\">\n<p style=\"text-align: center;\">5 Years<\/p>\n<\/td>\n<td width=\"155\">\n<p style=\"text-align: center;\">6 &#8211; 7%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"281\">National Saving Certificate (NSC)<\/td>\n<td width=\"142\">\n<p style=\"text-align: center;\">5 Years<\/p>\n<\/td>\n<td width=\"155\">\n<p style=\"text-align: center;\">7 \u2013 8%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"281\">Public Provident Fund (PPF)<\/td>\n<td width=\"142\">\n<p style=\"text-align: center;\">15 Years<\/p>\n<\/td>\n<td width=\"155\">\n<p style=\"text-align: center;\">7 \u2013 8%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"281\">National Pension Scheme<\/td>\n<td width=\"142\">\n<p style=\"text-align: center;\">Upto Age of 60<\/p>\n<\/td>\n<td style=\"text-align: center;\" width=\"155\">8 \u2013 10%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: left;\">So, here we see that ELSS are the best tax saving instruments. Invest in ELSS today and save taxes.<\/p>\n<div id=\"s-share-buttons\" class=\"horizontal-w-c-square s-share-w-c\"><a href=\"http:\/\/www.facebook.com\/sharer.php?u=https:\/\/myfintree.com\/blog\/tax-savings-with-equity-linked-saving-schemes\/\" target=\"_blank\" title=\"Share to Facebook\" class=\"s3-facebook hint--top\"><\/a><a href=\"http:\/\/twitter.com\/intent\/tweet?text=Tax Savings with Equity Linked Saving Schemes&url=https:\/\/myfintree.com\/blog\/tax-savings-with-equity-linked-saving-schemes\/\" target=\"_blank\"  title=\"Share to Twitter\" class=\"s3-twitter hint--top\"><\/a><a href=\"https:\/\/plus.google.com\/share?url=https:\/\/myfintree.com\/blog\/tax-savings-with-equity-linked-saving-schemes\/\" target=\"_blank\"  title=\"Share to Google Plus\" class=\"s3-google-plus hint--top\"><\/a><a href=\"http:\/\/www.linkedin.com\/shareArticle?mini=true&url=https:\/\/myfintree.com\/blog\/tax-savings-with-equity-linked-saving-schemes\/\" target=\"_blank\" title=\"Share to LinkedIn\" class=\"s3-linkedin hint--top\"><\/a><\/div>","protected":false},"excerpt":{"rendered":"<p>Equity Linked Savings Schemes (ELSS) are Mutual fund investment schemes that help you save income tax and are also known as tax-saving funds. Under section 80C,of The Income Tax Act, it allows taxpayers to invest up to INR 1.5 lakh <a href=\"https:\/\/myfintree.com\/blog\/tax-savings-with-equity-linked-saving-schemes\/\" class=\"read-more\">Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-602","post","type-post","status-publish","format-standard","hentry","category-tax-planning"],"_links":{"self":[{"href":"https:\/\/myfintree.com\/blog\/wp-json\/wp\/v2\/posts\/602","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/myfintree.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/myfintree.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/myfintree.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/myfintree.com\/blog\/wp-json\/wp\/v2\/comments?post=602"}],"version-history":[{"count":3,"href":"https:\/\/myfintree.com\/blog\/wp-json\/wp\/v2\/posts\/602\/revisions"}],"predecessor-version":[{"id":606,"href":"https:\/\/myfintree.com\/blog\/wp-json\/wp\/v2\/posts\/602\/revisions\/606"}],"wp:attachment":[{"href":"https:\/\/myfintree.com\/blog\/wp-json\/wp\/v2\/media?parent=602"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/myfintree.com\/blog\/wp-json\/wp\/v2\/categories?post=602"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/myfintree.com\/blog\/wp-json\/wp\/v2\/tags?post=602"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}