Currently, I am investing in SBI Magnum Global Fund, SBI Pharma Fund, UTI Transportation and Logistics Fund, UTI Mid Cap Fund, UTI MNC fund, and HDFC Mid-Cap Opportunities Fund via Systematic Investment Plans (SIPs). Are my SIPs eligible for tax deductions under under section 80C?
Only investments in Equity Linked Savings Schemes (ELSSs) or tax saving mutual fund schemes qualify for a tax deduction under Section 80C of the Income Tax Act. Unfortunately, none of your Systematic Investment Plans (SIPs) are in ELSSs. Therefore, you cannot claim any tax deduction on your investments under Section 80C. Investments in ELSS qualify for a tax deduction of up to ₹1.5 lakh under Section 80C. Here is a list of top-rated tax saving schemes.