ELSS: An easy way to earn and save tax
by Ravi Kumar Blogger LiveIn the modern
administration states, there are certain
aspects as per which the tax is levied on
the citizens. For many people, it can be
a burden as the income is not that high and still tax has to be paid. There are
various schemes also offered by the authorities that can help one save the tax.
One of such options is named as an equity-linked saving scheme where one has to
invest a certain amount in the specific scheme of a mutual fund, and the concerned amount is blocked for a
definite period. One cannot withdraw the same for a specific period and hence on the invested amount one can have the benefit of saving tax as well as fetching a good return in terms of rate when the price of
the units increases.
The investment:
For a common man, the most important question is how to invest in ELSS. Obviously, everyone likes to see his investment
growing and get the tax benefit on the same also. There are companies in the
market of mutual fund which are permitted by the government to bring ELSS in the
market and get the investment in them
from retail investors as well as institutes. There is a specific scheme number allotted to the concerned company for
specific ELSS scheme. Usually, each company is offered the ELSS once only. It is a tool which can help one save income
tax up to 150000 annually with the help of investment in it. The tax is exempted under section 80 C of the income
tax act.
The process for
investing in this tool is simple. One needs to get the form of the concerned
company and fill the same with his
details. One can go for a lump sum investment or one-time investment as per his choice. As soon as the form is filled and the amount is transferred the
investor can have receipt of the same which can work as investment proof also.
Due to such investment, the amount which is invested is
locked for 3 to 5 years as per the scheme, and one can have tax reduced to that extent of the invested amount. Not only that, the amount that
is invested in the ELSS can also grow
which means after concerned period one
can have amount with an increment.
Why invest in ELSS?
This scheme is
specifically for tax saving only. The
transaction here is transparent, and
hence one does not need to worry about the safety or growth of his money. One
can also monitor the increase or decrease
in the value of units as they are regularly
published. One can check several ELSS options offered by different
companies and go for the one that is best suitable to him. The best part of
this investment option is one can also go for the SIP that is systematic
investment plan when he wants to save tax and also invest good amount for a
better tomorrow. Hence ELSS can prove a vital tool in the financial goals of an
individual who loves to invest and earn.
Learn More about Mutual Funds Investments at Gulaq Mutual Fund Blog
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Created on Jun 10th 2019 03:47. Viewed 74 times.