Equity Linked Savings Scheme (ELSS)
Equity Linked Savings Schemes (ELSS) are the ideal way to invest in the share market while reducing your tax burden. These are diversified schemes, floated by different mutual fund houses, which invest more than 80% of their funds in shares and have the added advantage of tax benefits.
You also benefit from portfolio diversification and professional fund management.
Tax benefits
Investments to the extent of Rs.1 lakh are eligible for deduction under Section 80C
Capital gains on redemptions are exempt from tax under Section 10 (38)
Dividends are tax free under Section 10 (35)
Advantage over other tax saving instruments
> Shorter lock-in period of three years
> Potential for higher returns
