Only equity-linked savings schemes are eligible for income tax deductions
01-Mar-2017 •Research Desk
No, not all mutual funds are eligible for income tax deductions. There is a particular category of mutual funds which is eligible for tax deductions. It is called Equity Linked Savings Scheme (ELSS) which is an equity diversified fund with a 3 year lock in period. It qualifies for tax exemptions under section (u/s) 80C of the Indian Income Tax Act. Your two funds do not belong to this category, and therefore, are not tax saving funds.