Tax Saving through ELSS

Mutual Fund – Equity Linked Saving Schemes

Tax woes often make life seem like a burden. Achiievers Wealth is pleased to present you Equity Linked Tax Saving Schemes, to assist you with tax savings as per your requirement & to address two critical issues: tax planning and wealth creation.

Tax Saving through ELSS

  • ELSS (Equity Linked Savings Scheme) is diversified equity fund with a lock-in period of 3 years that provides tax savings and aims for growth.
  • These funds offer tax benefits (Individual /HUF) under Section 80C of Income Tax Act, 1961 according to which, investment made up to Rs 1 lakh in ELSS is deductible from taxable income.
  • Investments up to Rs. 1 lakh in ELSS funds are eligible as deduction from taxable income u/s 80 C

Illustration: It helps in saving considerable amount of taxes if planned efficiently.

Annual Taxable Income

Tax before investment in ELSS

Maximim amount to invest in ELSS

Taxable amount post ELSS investment

Tax after investment

Savings

200,000

0

100,000

100,000

NIL

NIL

400,000

20,000

100,000

300,000

10,000

10,000

600,000

50,000

100,000

500,000

30,000

20,000

1,200,000

190,000

100,000

1,100,000

160,000

30,000

All figures are in rupees. (The tax calculations shown above are as per the IT slab applicable to General Individual/ HUF assessee for FY 2013-14 exclusive of cess & surcharge.)ing the one which suits your need. Let’s have a look at these options in detail.

A smart tax plan can generate incremental returns on the investments along with tax saving benefit. There are various tax saving investment options available. In order to optimize the benefits it is crucial to analyze the available options & selecting the one which suits your need. Let’s have a look at these options in detail.

A major advantage of ELSS over other tax-saving instruments like NSC/PPF/Bank Deposits etc is the shorter lock-in-period (3-years) with the potential for higher returns.

Our Recommendations:

Axis Long Term Equity

Birla Sun Life Tax Relief 96

HDFC LT Advantage

ICICI Prudential Tax Plan

L&T Tax Advantage

SBI Magnum Taxgain

 Click here to download Form

 

Risk Factors: Achiievers Team & its associates are not liable or responsible for any loss or shortfall resulting from the operation of the scheme. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

 

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