Investments in ELSS funds offer tax deductions & their long-term income is tax-free…
05-Apr-2011 •Research Desk
I want to invest Rs 3,000 every month. Is there any good deposit scheme where I can get good returns in 2-3 years and income tax rebate?
The minimum lock-in that a financial instrument offers you tax deductions on investments is three years. You can consider investing in equity linked savings schemes (ELSS) from mutual funds for the same. Funds such as Canara Robeco Equity Tax Saver or HDFC Taxsaver are good options to consider as these funds have a proven performance history and track record. The investments in these funds offer tax deduction on investments and after the three year lock-in the fund’s value on redemption is tax free.