Worrying about tax its time to relax. Equity Linked Savings Scheme (ELSS) is a tool that provides tax savings and aims for growth. This comes with the least lock in period of 3 years u/s 80C.
What is ELSS?
- Type of Scheme : Equity-oriented Scheme
- Asset Allocation: 80-100% equities
- Scheme Objective: Capital Appreciation
Key Features
A major advantage of ELSS over other tax-saving instruments like PPF/NSC/Bank Deposits etc is the shorter lock-in period with the potential for higher returns.
Tax Benefits
- Investment up to a maximum of 1 lakh eligible as deduction from taxable income u/s 80 C
- Capital gains on redemption are tax-free u/s 10(38)
- Dividends are tax-free u/s 10(35)
