The Insidexpress
  • Business
  • Lifestyle
    • Fashion
    • Beauty
    • Home Decor
    • Home
    • Interior Design
    • Foods & Culinary
    • Dating & Relationships
    • Health
    • Pets & Animals
    • Spirituality
    • Sports & Athletics
  • Entertainment
    • Celebrities
    • Gaming
    • Movies
    • Music
    • TV
  • Financial
    • Loans
    • Insurance
    • Stocks
  • Industrial
    • Auto & Motor
    • Career
    • Education
    • CBD
    • Construction
    • Real Estate
    • eCommerce
    • Legal
    • Essay Writing
    • Gambling
    • Vaping
  • Technology
    • Digital Marketing
    • SEO
    • Cryptocurrency
    • Software
    • Metaverse
    • NFT
    • Web Design
    • WordPress
  • Travel
  • News
    • Basketball
    • Golf
    • Horse Racing
The Insidexpress is a centralized magazine for Lifestyle, Fashion, Beauty, DIY, Interior Design, Health, Relationships, Travel, HowTo & more.
  • Business
  • Lifestyle
    • Fashion
    • Beauty
    • Home Decor
    • Home
    • Interior Design
    • Foods & Culinary
    • Dating & Relationships
    • Health
    • Pets & Animals
    • Spirituality
    • Sports & Athletics
  • Entertainment
    • Celebrities
    • Gaming
    • Movies
    • Music
    • TV
  • Financial
    • Loans
    • Insurance
    • Stocks
  • Industrial
    • Auto & Motor
    • Career
    • Education
    • CBD
    • Construction
    • Real Estate
    • eCommerce
    • Legal
    • Essay Writing
    • Gambling
    • Vaping
  • Technology
    • Digital Marketing
    • SEO
    • Cryptocurrency
    • Software
    • Metaverse
    • NFT
    • Web Design
    • WordPress
  • Travel
  • News
    • Basketball
    • Golf
    • Horse Racing
The Insidexpress
  • Business
  • Lifestyle
    • Fashion
    • Beauty
    • Home Decor
    • Home
    • Interior Design
    • Foods & Culinary
    • Dating & Relationships
    • Health
    • Pets & Animals
    • Spirituality
    • Sports & Athletics
  • Entertainment
    • Celebrities
    • Gaming
    • Movies
    • Music
    • TV
  • Financial
    • Loans
    • Insurance
    • Stocks
  • Industrial
    • Auto & Motor
    • Career
    • Education
    • CBD
    • Construction
    • Real Estate
    • eCommerce
    • Legal
    • Essay Writing
    • Gambling
    • Vaping
  • Technology
    • Digital Marketing
    • SEO
    • Cryptocurrency
    • Software
    • Metaverse
    • NFT
    • Web Design
    • WordPress
  • Travel
  • News
    • Basketball
    • Golf
    • Horse Racing
  • Financial

Why ELSS mutual funds are better?

  • December 25, 2022
  • 3 minute read
Why ELSS mutual funds are better?
Total
1
Shares
1
0
0
0
0
0
0

Why ELSS mutual funds are better?

As our income grows with progress in our career, savings for taxes to avail income tax deduction becomes an unavoidable exercise. One should always try saving taxes, rather than evading them, in order to have a fair income post paying the desired taxes. 

As per Income Tax Act 1961, Indian citizens are allowed to save taxes under various sections like 80C, 80D and 80EE, etc. One can claim tax deduction up to Rs. 1.50 lakh every financial year, under Section 80C. 

We will discuss tax saving options under Section 80C in this article.

You can save in bank tax saver FDs, NSC or PPF which are traditional investment options as they offer you assured returns in terms of interest payment. However, if you can take some amount of risk, you can consider investing in ELSS or ELSS mutual funds.  ELSS funds are tax saving mutual funds, which invest in equities and has a 3-year lock-in period.  

ELSS mutual funds provide the opportunity to earn good returns along with tax savings. These mutual fund schemes invest at least 80% of the scheme’s assets in equities. So, the returns you could earn on them are directly linked to the stock market’s performance. This can be a suitable option if you want to invest for long-term goals such as creating a retirement corpus or child’s education or buying a new house. 

In order to understand why ELSS mutual fund investment are called tax saving mutual funds, let us understand in detail regarding tax treatment of various 80C investments:

Tax Treatment takes place at three stages of investment:

  • At the time of making the investment
  • During the period of investment 
  • At the maturity of the investment

ELSS mutual funds – During the first stage, there is tax saving under section 80C upto Rs 150,000 in a year. During the period of investment, there is no tax, if you have opted for the growth plan. However, if you have invested in the dividend plan, the dividends declared will be added to your income and taxed accordingly. At the time of redemption (lock-in period is only 3 years), capital gains upto Rs 1 Lakh is totally tax free and gains in excess of Rs 1 Lakh is taxed at only 10%.

ELSS mutual fund schemes can offer the highest returns among all 80C schemes as investments are made in equities. You benefit from market returns which are much higher than that of fixed returns offered by other tax saving schemes. 

PPF – On the investments, tax rebate is allowed upto Rs 150,000 in a financial year. PPF has only the growth option and whatever accumulates during the 15 year period, is tax free on maturity. 

NSC – At the time of investment, tax saving under 80C is allowed. During the tenure of investment, the accrued interest, except in the final year, qualifies for deduction under 80C, provided it is within the overall limit of Rs. 1.5 Lakhs. On maturity, if accrued interest during the tenure is not declared as income in IT returns, the accrued interest of the entire period is taxable, otherwise only the final year accrued interest would be taxable. 

Tax Saving 5 year Bank FD – On investment, tax rebate is allowed under section 80C. During the tenure of investment, interest is taxable and the bank deducts the tax at source. 

From the above, you can observe and understand that ELSS, PPF, NSC and bank tax saver FDs, all offer tax savings under the same section. However, when it comes to higher returns and the least lock-in period, ELSS mutual funds score very high. 



The Insidexpress is now on Telegram and Google News. Join us on Telegram and Google News, and stay updated.
Total
1
Shares
Share 1
Tweet 0
Pin it 0
Share 0
Share 0
Share 0
Share 0
Exavier Woods

You May Also Like
How to Use Technology to Your Advantage When Trading Stocks 
View Article
  • 4 min
  • Financial
  • Technology

How to Use Technology to Your Advantage When Trading Stocks 

  • January 22, 2023
Can You Get a Title Loan in Arizona?
View Article
  • 3 min
  • Financial
  • Loans

Can You Get a Title Loan in Arizona?

  • December 28, 2022
Where to Find Debt Help for Veterans
View Article
  • 3 min
  • Financial
  • Loans

Where to Find Debt Help for Veterans

  • December 8, 2022
When is the Best Time to Buy and Sell Stock?
View Article
  • 2 min
  • Financial

When is the Best Time to Buy and Sell Stock?

  • December 2, 2022
Should over 55s prioritise experiences over material possessions for a happier retirement?
View Article
  • 5 min
  • Financial

Should over 55s prioritise experiences over material possessions for a happier retirement?

  • November 29, 2022
6 Creative Ways to Pay Rent When You’re Bank Account is Low
View Article
  • 3 min
  • Financial

6 Creative Ways to Pay Rent When You’re Bank Account is Low

  • November 24, 2022
Invest Well: Loans You Can Use To Build Your Real Estate Portfolio
View Article
  • 4 min
  • Financial
  • Loans
  • Real Estate

Invest Well: Loans You Can Use To Build Your Real Estate Portfolio

  • November 24, 2022
How to achieve long-term financial goals through ULIP
View Article
  • 2 min
  • Financial

How to achieve long-term financial goals through ULIP

  • November 10, 2022

Top Web Hosting

  1. Siteground
  2. Bluehost
  3. Namecheap
  4. Dreamhost
  5. Cloudways
  6. InterServer

Top Website Builders

  1. Wix
  2. Ucraft
  3. Strikingly
  4. Site123
  5. Webnode

Top SEO Tools

  1. SEMrush

Top Marketing Tools

  1. ActiveCampaign
  2. Aweber
  3. GetResponse
  4. Moosend
  5. Pabbly
  6. Fiverr
  7. ClickFunnels
Featured Articles
  • What SMBs can do in order to survive the recession 
    What SMBs can do in order to survive the recession 
    • 4 min
  • Know The Importance Of Business Continuity Planning
    Know The Importance Of Business Continuity Planning
    • 3 min
  • Technology’s Impact on Business Growth
    Technology’s Impact on Business Growth
    • 3 min
About Insidexpress

The Insidexpress is a centralized magazine for Business, Lifestyle, Fashion, Beauty, Entertainment, Culture, Living, Travel, Health, How-To, Technology, World News & more.

Things you might like
  • Although the owner of gambling sites is not on gamstop UK www.newonline-casinos.co.uk, his sites are successful and attract players. They have many slot machines and live sections; you can enjoy bonuses, especially free spins for new and popular slot online
  • List of non uk casinos accepting uk players newukcasino.uk
  • Best bonuses at european casinos that accept uk players with big wins
  • Visit Best CSGO Gambling to gather the latest gambling guides.
  • We have the best-reviewed crypto casinos at CryptoCasinos.com
Recent Posts
  • What SMBs can do in order to survive the recession  1
    What SMBs can do in order to survive the recession 
    • 31.01.23
    • 4 min
  • Know The Importance Of Business Continuity Planning 2
    Know The Importance Of Business Continuity Planning
    • 30.01.23
    • 3 min
  • Getting The Most Out of Fishing: Why It’s Beneficial 3
    Getting The Most Out of Fishing: Why It’s Beneficial
    • 29.01.23
    • 3 min
  • Should I work out more, diet or get body contouring fat removal? 4
    Should I work out more, diet or get body contouring fat removal?
    • 29.01.23
    • 4 min
The Insidexpress
  • Home
  • Contact Us

Input your search keywords and press Enter.

Go to mobile version