Tax woes often make life seem like a burden. Achiievers Wealth are pleased to present to 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 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 |
| Application procedure: | |
| Click here to Download application form | |
| Fill up the application form as per required information | |
| Cheque/DD in favour of ‘Scheme Name’ | |
| KYC form & documents i.e. PAN & valid address proof | |
| Send the application form along with all required documents to our HO* or you may submit at nearest CAMS/Karvy office. | |
Happy Investing…
