How Do ELSS Funds Help in Income Tax Planning?
People often perceive investing and saving taxes as separate financial pursuits. However, there is a remarkable investment avenue that effortlessly merges both these objectives – Equity-Linked Saving Schemes (ELSS), offering benefits beyond the traditional tax-saving options. What Are ELSS Funds? ELSS, or Equity-Linked Saving Schemes, are mutual funds primarily invested in equities. What sets them apart is their unique combination of wealth-creation potential and tax-saving capabilities. The shortest lock-in period of any tax-saving option under Section 80C is three years, which applies to ELSS funds. This characteristic makes ELSS an attractive option for those seeking both tax benefits and flexibility. If you wish to invest in ELSS, but don't know how to, consult the best income tax planning advisor in Mumbai for optimal investments. How ELSS Facilitates Tax Planning in India Tax Benefits under Section 80C: ELSS investments allow individuals to claim deductions of up to Rupees