Download - Advantages of investing in elss
ELSS investments up to 1,50,000 are eligible for deduction from your taxable income under section 80 C.
ELSS has shortest lock in period (3 years).
Capital gains arising from redemptions and dividends are tax free.
Higher return compared to other schemes in the class.
You can Invest through a Systematic Investment Plan.
You can opt for a Dividend Payout option.
Advantages Of Investing In ELSS
How do deduction u/s 80C work?
Particulars Without Tax Saving Investments u/s 80C
With Tax Saving Investments u/s 80C
Gross Total Income Rs.7,50,000 Rs.7,50,000
Exemption u/s 80C Nil Rs.1,50,000
Total Income Rs.7,50,000 Rs.6,00,000
Tax on Total Income Rs.75,000 Rs.45,000
Tax saved Nil Rs.30,000
Comparison of ELSS and other Tax Saving instruments
Particulars PPF NSC ELSS
Tenure 15 years 6 years 3 years
Returns 8.70 % *(Compounded Annually)
8.50 to 8.80 % *(Compounded half-yearly)
12%-15%Returns / Dividends are Market linked and not assured
Minimum Investment Rs.500 Rs.100 Rs.500
Maximum Investment Rs.150,000 No limit^ No limit^
Amount eligible for deduction u/s 80C
Rs.150,000 Rs.150,000 Rs.150,000
Taxation for interest Tax free Taxable Dividends and capital gain tax free
Safety/ Risk Low Risk Low Risk High Risk(Market Linked)
Lock-in Period 15 Years - Partial Withdrawal after 6 years is permitted
6 Years 3 years