NUMEROUS AVENUES TO SAVE TAX
We have various avenues to save tax today, such as:
1. Five Year Bank Fixed Deposits
2. Public Provident Fund (PPF)
3. New Pension Scheme (NPS)
4. Unit Linked Insurance Plan (ULIP)
5. Equity Linked Savings Scheme (ELSS)
While other options provide only tax savings with little or no revenue, ELSS helps you to secure good returns along with great savings in tax as well.
SO, WHAT IS ELSS?
Simply put, ELSS is an equity oriented mutual fund scheme, which invests virtually all of its assets in equity.
WHAT KIND OF RETURNS AM I LOOKING AT?
The category average of an ELSS scheme return is more than twice that of a normal fixed deposit
HOW DO I CLAIM TAX BENEFIT?
For tax benefit, investment in an ELSS scheme should be held for a period of three years from the date of investment, to be eligible for tax benefit under Section 80C
IS THERE ANY ADDITIONAL BENEFIT OF ELSS?
Being an equity oriented fund, any long capital gains shall be exempt from tax
Lock –in of 3 years to be eligible for tax benefit
WILL I GET ANY CASH FLOW FROM ELSS?
If you opt for a dividend plan in your selected ELSS scheme, you shall receive dividend as and when declared, which shall be exempt from tax
At RichVik, we make sure that we create a tax-efficient portfolio for you, to provide you dual benefit of both tax savings & good returns.