Friday, July 11, 2025
  • Login
Euro Times
No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
Euro Times
No Result
View All Result

What makes ELSS the best tax scheme under Section 80C?

by Euro Times
November 2, 2022
in Finance
Reading Time: 3 mins read
A A
0
Home Finance
Share on FacebookShare on Twitter


Of the several tax saving schemes out there, ELSS is probably the most tempting and lucrative schemes out there which can help all taxpayers with their tax woes. Equity Linked Savings Scheme, often refereed to as ELSS, is an open ended tax saving scheme that comes with a three year lock and a tax benefit. Having said that, the three year lock-in is probably the shortest among other tax saving instruments that come under Section 80C. As the name suggest, ELSS is an equity mutual funds scheme whose primary goal is to achieve long term capital appreciation by investing in blue chip stocks and select mid cap stocks. Since this is an equity heavy portfolio,
ELSS
investors are expected to remain invested for the long run so that the scheme can perform to its fullest potential and rewards with decent capital gains.

Here’s a simple example elaborating the way an ELSS helps with tax saving –

Aarushi Vaidya is a chiropractor drawing an annual income of Rs. 18 lakhs. This lands her in the highest tax bracket. Aarushi learns about the ELSS scheme from one of her patients who is an investment banker and decides to invest Rs. 1.5 lakh in this equity oriented tax saving scheme. Now according to 80C of the Indian Income Tax Act, 1961 an individual can invest up to Rs. 1,50,000 in ELSS and claim tax deductions for the same. By investing in ELSS Aditi’s gross taxable income has now come down to Rs. 16.5(18-1.5) lakhs per annum. Also, the three year lock in will ensure that the invested amount continues to accrue interest and might even help her build wealth in the long term.

What makes ELSS a better tax saving scheme among others under Section 80C?

First and foremost, investors should understand that ELSS is a tax saving scheme whose investment portfolio is exposed to the market’s volatile nature all the time. Hence, investors should only invest as per their risk appetite. ELSS might be volatile in the short term, but this saving fund has outperformed other tax saving instruments over the long run. ELSS is an equity mutual fund scheme and like all equity schemes, it too has a high risk rewards ratio. This means that although there is a chance of losing money that you invest in ELSS, you have the chances of earning higher capital appreciation when the markets are performing.

Also, almost every established fund house and AMC are offering ELSS schemes. This gives investors an opportunity to compare the past performance of several ELSS schemes, look at their expense ratio, determine whether the scheme is managed by experienced fund managers and so on. It is better to do some background research before investing so you have a better perspective on the chosen ELSS fund. Also, you can start a monthly
SIP
to inculcate the discipline of investing in your ELSS scheme.

A Systematic Investment Plan is an investment vehicle for making small fixed investments at periodic intervals towards the desired mutual fund scheme of your choice. All an investor has to do is instruct their bank to allow auto debit so that every month on a fixed date a predetermined amount is debited from their savings account and electronically transferred to the ELSS fund. SIPs are flexible and you can start, stop, skip or discontinue your SIP depending on your investment objective and the performance of the scheme. You can even refer to SIP calculator, a tool that lets you determine the corpus you might accumulate at the end of your investment journey.

Do consult a financial advisor and discuss your financial goals before investing in ELSS.



Source link

Tags: 80CELSSSchemesectionTax
Previous Post

Crypto Is The ‘Future Of Finance,’ Survey Of Over 50% Of American Voters Show

Next Post

MARKET LIVE: Sensex extends decline, down 250 pts; PSB, IT stocks weigh

Related Posts

Trump announces 35% tariffs on Canada starting Aug. 1, warns of higher levies

Trump announces 35% tariffs on Canada starting Aug. 1, warns of higher levies

by Anniek Bao,Vinay Dwivedi
July 11, 2025
0

U.S. President Donald Trump and Canada's Prime Minister Mark Carney discuss throughout a household picture on the G7 Summit in...

Corn Sticking Close to Unchanged at Midday

Corn Sticking Close to Unchanged at Midday

by Barchart
July 11, 2025
0

Corn futures are down fractionally within the close by contracts, with new crop December up ¼ cent. There have been...

Life has no fun on high base as ULIP sales slow down

Life has no fun on high base as ULIP sales slow down

by Euro Times
July 11, 2025
0

MUMBAI: Life insurance coverage corporations posted a 4.25% year-on-year improve in new enterprise premiums for the April-June quarter, pushed largely...

Why Is Every Natural Disaster Being Politicized?

Why Is Every Natural Disaster Being Politicized?

by William L. Anderson
July 10, 2025
0

Even whereas the seek for lacking individuals in flood-ravaged Texas continues, the politicized invective has come from the Left. Maybe...

Barclays launch new sub-4% mortgage deal to compete with best rates on market

Barclays launch new sub-4% mortgage deal to compete with best rates on market

by Karl Matchett
July 11, 2025
0

Signal as much as our free cash publication for funding evaluation and skilled recommendation that will help you construct wealthSignal...

Genius Act: This New US Crypto Law Could Pave the Way for the Next Global Financial Crisis

Genius Act: This New US Crypto Law Could Pave the Way for the Next Global Financial Crisis

by Yves Smith
July 10, 2025
0

Yves right here. I want I had reposted among the content material from an incredible 2022 put up at Heisenberg...

Next Post
MARKET LIVE: Sensex extends decline, down 250 pts; PSB, IT stocks weigh

MARKET LIVE: Sensex extends decline, down 250 pts; PSB, IT stocks weigh

Huobi Global reportedly plans relocation to the Caribbean

Huobi Global reportedly plans relocation to the Caribbean

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Dividend Kings In Focus: ABM Industries

Dividend Kings In Focus: ABM Industries

July 11, 2025
8th CPC Revised Pension Estimates: Are you Level 2, 4, 6, 8 and 10 employee? Know your projected revised pension at 2.08 and 2.57 fitment factors

8th CPC Revised Pension Estimates: Are you Level 2, 4, 6, 8 and 10 employee? Know your projected revised pension at 2.08 and 2.57 fitment factors

July 11, 2025
Russian basketball player arrested on suspicion of carrying out ransomware attacks

Russian basketball player arrested on suspicion of carrying out ransomware attacks

July 11, 2025
Trump announces 35% tariffs on Canada starting Aug. 1, warns of higher levies

Trump announces 35% tariffs on Canada starting Aug. 1, warns of higher levies

July 11, 2025
Why ACA health insurance premiums may see ‘sharp’ increase in 2026

Why ACA health insurance premiums may see ‘sharp’ increase in 2026

July 11, 2025
Robinhood Offers Crypto Trading “at the Lowest Cost,” but Is It False Advertising?

Robinhood Offers Crypto Trading “at the Lowest Cost,” but Is It False Advertising?

July 11, 2025
Euro Times

Get the latest news and follow the coverage of Business & Financial News, Stock Market Updates, Analysis, and more from the trusted sources.

CATEGORIES

  • Business
  • Cryptocurrency
  • Finance
  • Health
  • Investing
  • Markets
  • Politics
  • Stock Market
  • Technology
  • Uncategorized
  • World

LATEST UPDATES

Dividend Kings In Focus: ABM Industries

8th CPC Revised Pension Estimates: Are you Level 2, 4, 6, 8 and 10 employee? Know your projected revised pension at 2.08 and 2.57 fitment factors

  • Disclaimer
  • Privacy Policy
  • DMCA
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In