You can claim deduction up to Rs 1.5 lakh under section 80C of the Income Tax Act on investments made in ELSS.
ELSS: If you want to invest in tax saving scheme, then you should not delay it. Under the provisions of the Income Tax Act, for exemption on income, investment has to be made before March 31. Equity Linked Savings Scheme (ELSS) is a tax saving fund under which one can invest in equity and equity oriented securities. Some part of the investors’ capital is also invested in debt instruments. Along with this, you can also save tax in this. Through this, you can claim tax deductions up to Rs 1.5 lakh under Section 80C of the Income Tax Act, 1961. It comes with a lock in period of three years.
These funds have a lock-in period but the specialty is that you can continue investing in it even after that. Schemes with a lock-in period of 3 years or 5 years can also be held for a long time. Holding it over a long period increases the scope for increasing returns. The advantage of having a lock-in period is that investors hold it for a longer period, which also increases the scope for increasing returns.
Now health insurance can also be done through video call, ICICI Lombard has started a new facility, apply like this
Is it right to invest in ELSS?
Since February 2019, the market has gained about 16.75 per cent. Investors who started investing in February 2019, with their lock-in period ending this month in February 2022, have the option to redeem or continue as an open-ended scheme. Also, for investors who had invested from February 2016 to February 2019, the market had grown by 14.50 per cent and by February 2022 has grown by about 15 per cent. This shows that despite volatility, equity indices tend to move up in the long run. In such a situation, investing in ELSS can prove to be a profitable deal for the investors. ELSS has given returns of 23 per cent in last 1 year, 19 per cent in 3 years, 14.5 per cent in 5 years and 15.45 per cent in 10 years.
Why is it beneficial to have a medical test while taking term insurance? If this is not done then what problems can happen in future?
While choosing the right ELSS scheme, one should consider the long term performance of the fund. One should invest in consistently outperforming funds.
Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.
,