Get tax benefit by investing in the Equity Linked Savings Schemes ( ELSS ). You can use this ELSS for wealth building purposes by continuing your investment after 3 years. Thanks to the twin advantage of Capital Appreciation and Tax benefits which ELSS provide as it inculcates a disciplinary form of investing for generating higher returns.
To start investing in ELSS, you can start from a Systematic Investment Plan(SIP)from as low as ₹ 500. There is no maximum limit on SIP. It depends on you of whatsoever amount you can park your money in such scheme. If you want to exit from ELSS scheme, you can do so by selling it after 3 years.
Along with tax benefits, ELSS offers you the following advantages:
Try to avoid one-time investments in ELSS instead break it down into a monthly and recurring mode of payments in order to practice discipline and reign better control of tax saving investments and future wealth building approach.
Let's check out by comparing your situation without tax saving alternative (ELSS) and with tax saving options as under :
|Particulars||Without ELSS/80 C Tax Saving Investment||With ELSS/80C Tax Saving Investment|
|Gross Total Income||₹ 7,50,000||₹ 7,50,000|
|Deductions under sec-80 C||Nil||₹ 1,50,000|
|Total Income||₹ 7,50,000||₹ 6,00,000|
|Total Taxable Income||₹ 77,250||₹ 46,350|
|Tax Saved||Nil||₹ 30,900|
Note : Tax calculation is done for a male person less than 60 years in receipt of salaried income for the assessment year 2017-18.