Returns are linked to stock market and are tax-free
Equity Linked Savings Schemes (ELSS) is a mutual fund investment that reduces your taxable income by ` 1,50,000. With a minimum lock-in period of just 3 years, ELSS has the potential to earn higher returns than most other tax-saving options as most of the portfolio is invested in the stock market.
ELSS MF Schemes vs other Tax Saving Schemes
ELSS
Tax-saving FD
ULIP
NSC
PPF
EPF
Lock-in period
3 years
5 years
5 years
5/10 years
15 years
Till termination of employment
Taxation aspect
Capital gains are taxable post 1 Lakh
Interest is taxable as per your IT slab
Maturity/claims proceed are tax-free
Interest is taxable as per your tax-slab
Interest is tax-free
Interest is tax-free^^
Returns (p.a.)
Market-linked#
6.0%^
Market-linked
7.8% (As on 1-7-17)
7.8 % (As on 1-7-17)
8.65 % (As on 1-4-2017)
Lock-in period
Taxation aspect
Returns (p.a.)
ELSS
3 years
Dividend & capital gains are tax-free
Market-linked#
Tax-saving FD
5 years
Interest is taxable as per your IT slab
6.0%^
ULIP
5 years
Maturity/claims proceed are tax-free
Market-linked
NSC
5/10 years
Interest is taxable as per your tax-slab
7.8%
(As on 1-7-17)
PPF
15 years
Interest is tax-free
7.8 %
(As on 1-7-17)
EPF
Till termination of employment
Interest is tax-free^^
8.65 %
(As on 1-4-2017)
# Return in market linked ELSS have been very good since inception. you are advice to check our ELSS return table before investing.
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