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aboutEQUITY LINKED SAVINGS SCHEME

Tax Saving + Potential Wealth Creation

Sometimes, when we focus on a single benefit, we may overlook a big opportunity. The same applies to the choice of your tax saving investments; so don't just save tax, but aim to create wealth by investing in an Equity Linked Saving Scheme (ELSS).

  • What is Equity Linked Savings Scheme (ELSS)?

    • A Mutual Fund scheme that helps save tax and offers an opportunity to grow your wealth through investments in equities
    • It qualifies for tax deductions under section 80C of the Income Tax Act, 1961

  • Why invest in ELSS?

    • Offers long term partnership of Tax Saving and Wealth Creation opportunity
    • Has a short lock in period of 3 years
    • Provides deduction of up to Rs.1,50,000 from Gross Taxable Income
    • Long Term Capital Gains of up to Rs. 1 lakh per year are tax exempt
    • Is managed by professional Fund Managers who aim to deliver consistent returns

How Does ELSS work ?

  • Particulars
    Without Tax Saving Investments u/s 80C of Income Tax Act, 1961
    With Tax Saving Investments
  • Gross Total Income
    `12,00,000
    `12,00,000
  • Exemption u/s 80C
    Nil
    `1,50,000
  • Total Taxable Income
    `12,00,000
    `10,50,000
  • Tax on Total Income*
    `1,72,500
    `1,27,500
  • Tax Saved
    Nil
    `45,000 + 4% Education Cess = ` 46,800

An Investor With Income Of `12,00,000 Can Save Up To `46,800 by Availing Tax Deductions under Section 80C of the Income Tax Act, 1961
*Tax on Total Income is excluding surcharge and cess; Taxes have been computed as per Finance Act 2018-19



Know more about ELSS here