ELSS: The month of March is about to end. Many people are looking for extra tax saving options on this occasion. This year you can invest in Tax Saver Funds or ELSS to save tax. Let us tell you how you can select the right fund for this.
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ELSS: There is not much time left for the month of March to end. as such March 31 Coming closer, many people have started looking for tax saving options to save money. People are looking for such tax saving option in which they get huge profits and do not have to pay tax. However, there are many investment options available in the market. But, mutual fund You can get good benefits by investing money in it. One such option is mutual funds. Equity Linked Savings Scheme (ELSS).
Both salaried or non-salaried persons can invest in this scheme. According to experts, Equity Linked Savings Scheme is a better option to save tax. Because most of all you can get excellent returns in funds with low lock-in period. In this scheme, you can also take the benefit of tax deduction of Rs 1.5 lakh under section 80C. Let us tell you in which funds you are likely to get returns.
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ELSS Funds which have given excellent returns in 3 years
- Quant Tax Plan Dir – 39.03%
- Parag Parikh Tax Saver – 25.66%
- IDFC Tax Advtg – 24.73%
- PGIM Ind ELSS Tax Saver – 22.31%
- Bank of India Tax Advtg – 21.21%
ELSS Benefits
ELSS invests 80% in equity and 20% in debt. There is no maximum limit for investment in this. But you can invest in it from 500 rupees. The minimum lock-in period for this is 3 years. On investing, you also get the benefit of tax deduction up to Rs 1.5 lakh under section 80C.
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Take special care of these things before investing
- If you want to save tax through ELSS mutual funds, then for this you have to choose the old tax regime.
- Tax saving mutual funds are part of the deduction under section 80C.
- There are several options for deduction under section 80C. This includes LIC, EPF, PPF.
- Whenever you are opting for ELSS fund, select the growth option instead of the dividend option.
- To save tax, ELSS should be kept as the last option. You can instead make a SIP investment every month.
