For those who fall in large tax bracket, saving of income tax is much important. There are various options offered by the government under the income tax act with the help of which one can save a good tax under section 80C. The ELSS is one of the tools that can help one save good tax and also have a better return on investment that can help him get money back in the future. One needs to study this option first before investing any of his amounts under this section as it offers multiple options.
The tool:
As per the market experts, the ELSS or tax-free mutual fund can be the best option that can help one save a good amount of tax. One can invest in the market up to 150000 under various schemes of mutual fund which are known as tax-free mutual fund. They are specially designed not to offer only the tax benefit but also to facilitate return as one has to keep the amount blocked for a minimum of certain period. There is hardly any AMC in the market that does not offer the benefits of ELSS to such investors who want to keep the amount invested for a long time, take benefit of saving tax and also get better returns than many other options under the same section. ss
How can ELSS be beneficial?
For those who fall in large tax bracket, saving of income tax is much important. There are various options offered by the government under the income tax act with the help of which one can save good tax under section 80C. The ELSS is one of the tools that can help one save good tax and also have better return on investment that can help him get money back in future. One needs to study this option first before investing any of his amounts under this section as it offers multiple options.
The tool:
As per the market experts, the ELSS or tax-free mutual fund can be the best option that can help one save a good amount of tax. One can invest in market up to 150000 under various schemes of mutual fund which are known as tax-free mutual fund. They are specially designed not to offer only the tax benefit but also to facilitate return as one has to keep the amount blocked for a minimum of a certain period. There is hardly any AMC in the market that does not offer the benefits of ELSS to such investors who want to keep the amount invested for a long time, take benefit of saving tax and also get better returns than many other options under the same section. ss
How can ELSS be beneficial?
ELSS is the modern option for saving tax in the form of mutual fund investment. It is also known as the tax-free mutual fund that can help one save amount on tax as he has to invest the same in this mutual fund with any of the valid AMC. This mutual fund carries a lock-in period for 3 to 5 years. It means that the investor cannot withdraw the amount from the mutual fund within said period. Hence the AMC gets amount to be invested in the market for the long run. The investor can also get a handsome return on this investment as he keeps the amount for a considerable period.
The options:
Here in this option the best part is one can go for the dividend or growth option but one cannot have dividend also withdrawn. Hence one can go for the dividend reinvestment and earn more units with every dividend which can help him get better return in a long term. For the investors it is easy to invest in this option of mutual fund as one can go for offline or online investment. The online investment is also much simplified by the concerned AMCs where one needs to invest with the help of an application on the smartphone or log in the website. The submission of documents is also possible online and KYC can be done with the help of the same. In case of withdrawal after the concerned period one needs to simply raise a request and accordingly the invested amount as well as return will be credited to his bank account. The best part here is one can save the tax via investing in this option in installments also.
ELSS is the modern option for saving tax in the form of mutual fund investment. It is also known as the tax-free mutual fund that can help one save amount on tax as he has to invest the same in this mutual fund with any of the valid AMC. This mutual fund carries a lock-in period for 3 to 5 years. It means that the investor cannot withdraw the amount from the mutual fund within said period. Hence the AMC gets amount to be invested in the market for the long run. The investor can also get a handsome return on this investment as he keeps the amount for a considerable period.
The options:
Here in this option the best part is one can go for the dividend or growth option but one cannot have dividend also withdrawn. Hence one can go for the dividend reinvestment and earn more units with every dividend which can help him get better return in the long term. For the investors, it is easy to invest in this option of a mutual fund as one can go for offline or online investment. The online investment is also much simplified by the concerned AMCs where one needs to invest with the help of an application on the smartphone or log in the website. The submission of documents is also possible online and KYC can be done with the help of the same. In case of withdrawal after the concerned period, one needs to simply raise a request and accordingly the invested amount, as well as return, will be credited to his bank account. The best part here is one can save the tax via investing in this option in installments also.
