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Tax implications of investing in ELSS

You can invest in an Equity Linked Saving Schemes (ELSS) or a tax planning mutual fund scheme and claim a tax deduction of up to Rs 1.5 lakh under Section 80C

If I invest in an ELSS like Axis Long Term Equity Fund in December 2015 in lumpsump or through a Systematic Investment Plan (SIP), what will be tax the implications for 2015?
- Prasad

You can invest in an Equity Linked Savings Scheme (ELSS) or a tax planning mutual fund scheme and claim a tax deduction of up to ₹1.5 lakh under Section 80C of the Income Tax Act. These schemes come with a lock-in period of three years. If you invest, say, ₹50,000 in a tax planning scheme in a lumpsum or via an SIP during the financial year 2015-2016 (that is, between 1 April, 2015 and 31 March, 2016), you can claim a tax deduction of ₹50,000 under Section 80 C while filing the Income Tax returns for the financial year.

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