What are the tax implications of withdrawing money from Equity Linked Savings Scheme (ELSS) after three years?
- Venkatesh
You can invest in Equity Linked Savings Schemes (ELSSs) or tax planning mutual funds and claim tax deduction of up to ₹1.5 lakh under Section 80C of the Income Tax Act. They come with a three-year lock-in period.
Investors are free to withdraw the money after three years and they do not have to pay any tax on the returns at the time of withdrawal.