ELSS : Why Wait For The Year-End Scramble To Save Tax

ELSS is definitely the solution to your tax woes. Know how.
It is common among the salaried community to go through a rush for tax-saving around Jan-Feb each year. Company HR sets deadlines for submitting investment proofs. Some make a rushed investment in anything that carries a ‘tax-saving’ tag, others miss the bus altogether and regret later.

Here’s a way to hit not two, but three birds with one stone – avail tax benefits on the investment, earn great returns on your money, and even have the returns entirely tax-free.

Of all the tax saving options out there, the equity linked savings scheme (ELSS) is far and away the best:

It is offered by the most trusted names in the market – including ICICI, SBI, HDFC, Birla, DSP BlackRock and other mutual funds
It has the lowest lock-in period (3 years). Most others have 5 years or longer
It provides the best returns. Equities return the most over the long term, not fixed deposits or post office schemes
It has the lowest charges and commissions. Insurance schemes, in contrast, siphon a lot of your premium into agent commissions and hence get you less bang for the buck

Best of all, the ELSS is available as a monthly investment (SIP), to avoid the last minute rush that happens in Jan-Feb. From the comfort of your phone or laptop, you can now setup a monthly investment in the ELSS that takes care of your returns and tax-saving in one go.

How much?

You can invest upto Rs 12.5K every month from April through March to avail the full tax benefit.

Your provident fund contribution counts towards this – a look at your salary slip should tell you how much that is. You can remove that from the above number
If you have any home loan being repaid or have an insurance policy running, you can subtract that principal / premium as well
If you are starting later than April, do adjust for the lost months!

Click Here to know what’s exactly the best way to go about with ELSS and Tax-Saving.

Naren