Tax Saving Tips: The season of saving tax is going on now. Investment proofs are being sought in most companies.
If you also do a job, you would have been asked to submit the actual evidence on behalf of the employer.
After some time, investment declaration will also be sought for the new financial year, i.e. 2023-24.
In such a situation, it is necessary to be active regarding financial planning. If you do this preparation beforehand, you will get a double benefit.
Firstly you will get tax exemption on investment, and secondly, you will get better returns.
If this decision is taken at the last moment, tax relief may be available, but the returns will not be high.
ELSS will save tax as well as create wealth
Finwise founder Pratibha Girish said that ELSS is an excellent scheme for returns and tax savings.
Its average return is 12-14 fantastic per cent. Its lock-in period is of 3 years. After that, investors can exit from it.
Investing in ELSS gives the benefit of deduction under section 80C.
Under this section, removal is available on investments up to Rs 1.5 lakh. Its returns are very high compared to other tax-saving schemes.
You can invest in both lump sum and SIP
The financial expert said that at least Rs 500 can also be invested in ELSS. There is no limit regarding the maximum investment.
Investors can do lump sum or SIP. It helps in saving tax as well as in wealth creation.
When withdrawing from the fund after three years, a 10% tax is levied under LTCG.
There is no tax on capital gain up to 1 lakh. After that, only the additional income is taxed. It is only possible to withdraw it in an emergency after three years.
Sharekhan chose these 5 funds in ELSS
Brokerage firm Sharekhan has listed IDFC Tax Advantage (ELSS) Fund Growth, Canara Robeco Equity Tax Saver Fund – Growth,
Mirae Asset Tax Saver Fund – Reg – Growth, Kotak Tax Saver Fund – Reg – Growth and DSP Tax Saver Fund – Growth for January.
Growth is selected for you. The average return of these funds in the last three years is between 18-23%.
