ELSS- Time to save your tax

Hello Readers..

January Month has passed and the planning to save tax has started for lot of employees. This time everyone is interested in the tax saving instrument where they can invest their money. But due to lack of time, they are not able to compare all instruments which can provide them with a better return.

What is ELSS?????

ELSS stands for Equity Linked Savings Scheme where a person can invest his extra income from his tax slab and can expect a better return in future. This ELSS is totally stock market's dependent tax saving scheme. This is available in the form of a mutual fund which is an open-ended diversified long term plan. Money can be invested in this scheme through SIP or Lump sum mode. Anyone who adopt this scheme for tax purposes, can get upto Rs. 1.5 lac deduction from u/s 80C. Among other schemes like PPF, KVC, NSC or Tax saving FDs, only ELSS has 3 years of lock-in period.

Why should someone choose ELSS??

ELSS fulfills the purpose of tax savings, investment and moreover is one of the best options to get a good return.

* ELSS has 3 years of lock-in period which is comparatively less than other tax saving schemes.

* Totally stock market related instrument where someone can get higher returns.

* Amount invested in ELSS is exempted upto Rs. 1.5 lac from u/s 80C in income tax act.

* Return from ELSS is completely tax-free from the income tax.

* Funds are managed by Mutual fund experts and amount is diversified in different sectors.

* Its Easy to Redeem money from ELSS after lock-in period of 3 years.

How can someone open an ELSS account??

Its very easy to open an ELSS account. First choose an institution which provides this scheme like Reliance, ICICI or HDFC,  Every Mutual fund institution have their own schemes.

 If you still haven't invested money ever in Mutual Fund, you have to complete your KYC by PAN, ADHAAR and passport size photo. After your KYC, fill a form issued by mutual fund institution, pay your cheque to them and get your ELSS fund.

For online opening of an account, you need to install any financial app like Paytm money, Paisa bazaar etc. , complete your KYC and choose a good fund.



Thanks
Saurav..