Ask Value Research

Redeeming ELSS Units

An investor wants to know if he can redeem or transfer his ELSS units within the 3 year lock-in period

I have some ELSS funds. Can I redeem them within the 3 years lock-in period? Can I transfer the above ELSS to other funds like debt funds? If I redeem ELSS funds within the lock-in period, what will be the tax implication?
-Mathivanan Devadoss R

ELSS funds can neither be redeemed nor transferred within their mandatory 3 year lock-in period. They can be transferred to debt after 3 years.

Since they cannot be redeemed before 3 years, so there is can be no tax implication arising out of this.

This article was originally published on March 05, 2009.

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