ELSS (Equity Linked Savings Schemes) are equity oriented mutual funds offering tax benefits under Section 80C of the Income Tax Act 1961. ELSS products stand out among all the other tax saving options, given its higher equity exposure and hence the potential for Wealth Creation in addition to the taxation benefits.
You can save tax upto Rs. 46,800 per year by investing in ELSS funds subject to the following:
Individual and HUF having taxable income of less than Rs. 50 lakhs can invest upto Rs. 1.5 lakhs under the ELSS scheme during the FY 2018-19 as per provision of Section 80C of the Income Tax Act 1961 (Includes applicable cess). Tax saving will be proportionately reduced subject to the taxable income and investments.
Further, Investment in ELSS schemes is subject to lock in period of 3 years from the date of allotment of units. The tax benefits are as per the current income tax laws and rules. Investors are advised to consult their tax advisor before investing in such schemes.