| Only three months remain till you can plan well and invest your hard money to save tax. That's right, if you want to save tax this year, invest in tax saving schemes. |
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| If you do not invest properly in tax saving schemes, TDS will be deducted from your hard-earned money for which you grind every day, for the entire year. This is a heartbreak that most salaried individuals face at the end of every financial year. |
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| Most people who want to save tax, look for a way out from this and take the help of different tax-saving investment opportunities. |
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| Some of the most popular Investment options that most salaried individual look to, and how they compare against ELSS: |
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| Investment | Returns | Lockin Period |
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| National Pension Scheme | 12-14% | Till Retirement |
| Unit Link Insured Plan | According to the plan chosen | 5 Years |
| PPF | 7-8% | 15 Years |
| Sukanya Samriddhi Yojna | 8.5% | N/A |
| National Savings Certificate | 7-8 % | 5 Years |
| Senior Citizen Saving Scheme | 8.7% | 5 Years |
| Bank FDs | 6-7% | 5 Years |
| Insurance | According to the plan chosen | 3 Years |
| ELSS | 15-18% | 3 Years |
|---|
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| Investment in any tax saving scheme should serve the basic purpose of saving the tax and also, at the same time, help in creating wealth for the future with a lower lock-in period. Unfortunately, that is not the case with most of these investments. |
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| Investing in these options achieve a mini-goal of saving tax. But the returns on these investments are so low that it hardly is able to reach the inflation levels of our country, let alone beating the inflation rate even after a lock-in period of 5 to 15 years. |
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| By looking at the numbers in the above table, it is clear that the only investment that helps you achieve both these goals in the most efficient manner is ELSS. |
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So, what are ELSS Schemes?
Equity Linked Savings Scheme , popularly known as ELSS are close-ended and diversified equity schemes offered by mutual funds in India. They offer tax benefits under Section 80C of the Income Tax Act 1961. ELSS can be invested using both SIP (Systematic Investment Plan) and lumpsum investment options. There is a 3 years lock-in period and thus has better Liquidity compared to other options like NSC and Public Provident Fund. |
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| Investing in ELSS Mutual Funds provide you with the opportunity of saving tax upto Rs.46,800/- and also create true wealth in the long run. The returns you get by investing in ELSS is much more than that of other tax saving schemes and also beats the inflation by a fair margin with a lock-in period of just 3 years . |
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| Invest in ELSS Mutual Fund baskets today to save your tax upto Rs. 46,800/- and at the same time create wealth - |
