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Will my STP qualify for deduction under Section 80C?

A Systematic Transfer Plan (STP) is a redemption from one scheme and a purchase in another scheme

If I start a Systematic Transfer Plan (STP) from an ELSS Regular Growth Fund to the same AMC's ELSS Direct Growth fund, will it be treated as a fresh investment and can I claim a tax deduction under Section 80C?
- Deepak Kanade

A Systematic Transfer Plan (STP) is a redemption from one scheme and a purchase in another scheme. So, your investment would qualify as a fresh investment in the new scheme. You can claim a tax deduction on your investment under Section 80C of the Income Tax Act.

This article was originally published on March 09, 2016.

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