In ELSS,the majority of funds are invested in equities. Rule - 2. More. ELSS funds have a lock-in period of three years. Qualifies for tax exemptions under section u/s. Tax savings of Rs. Definitions. When it comes to investing in India, one instrument that is gaining immense popularity is the Unit-Linked Insurance Plan (ULIP). Equity Linked Savings Scheme (ELSS) is a type of mutual fund scheme that invests in equity-related instruments and helps you claim your investment in an ELSS for an income tax deduction. These are tax saving-cum-investment schemes offered by most banks, fund houses, AMCs, etc. The investment made in ELSS funds qualifies for tax exemption under Section 80C of the Income Tax Act. Among the many instruments available for in the market, Equity-linked savings scheme (ELSS) are one of the preferred options. One such scheme which offers tax benefits up to Rs 1,50,000 per annum under Section 80C of the Income Tax Act is the Equity Linked Savings Scheme or ELSS. ELSS also has a mandatory lock-in period of three years. An ELSS or Equity Linked Savings Scheme is just like any other mutual fund scheme. 1,50,000. 46,800 mentioned above is calculated for the highest income tax slab. An Open-ended Equity Linked Savings Scheme with a statutory lock in of 3 years and tax benefit. Features of ELSS Mutual Funds. These mutual funds … That’s why these MF funds are also known as tax saving mutual fund schemes. Long-term capital gains from these funds are tax free in your hands. The scheme offers the dual benefit of tax saving and wealth creation. ELSS funds invest more than 80% of its corpus in equities and equity-related instruments. Named after Rajiv Gandhi, the sixth Prime Minister of India, the scheme was announced by the finance minister, P. Chidambaram, on 21 September 2012. Firstly, any amount up to Rs.1,50,000 invested in ELSS is exempted from income tax. Income Tax Department > Tax Laws & Rules > Rules > Equity Linked Savings Scheme, 2005 Income Tax Department > All Rules > Equity Linked Savings Scheme, 2005 Choose Rules: Rule No. Equity Linked Savings Scheme ( ELSS) Equity-linked savings scheme is a type of equity mutual fund that comes with the double benefit of tax saving and wealth creation. Short title and commencement. The same applies to the choice of your tax saving investments; so don't just save tax, but aim to create wealth by investing in an Equity Linked Saving Scheme (ELSS). An equity linked savings scheme (ELSS) is a type of mutual fund which invests the majority of its total assets in equity and equity-related instruments. Other than traditional investment options, you can consider investing in equity as an asset class with ELSS (Equity Linked Savings Scheme), which is an equity mutual fund with a 3-year lock-in. What is ELSS or Equity Linked Savings Scheme ? Sometimes, when we focus on a single benefit, we may overlook a big opportunity. Equity Linked Savings Scheme (ELSS) Equity Linked Saving Scheme Fund is nothing but a tax-saving Equity Mutual Fund. and come with a host of benefits. One such way is the ELSS (Equity linked savings scheme). When almost all equity funds restrain you from paying long-term capital gains tax of 10.4% up to an amount of Rs. ELSS is a diversified equity mutual fund where the investors enjoy the dual benefits of capital appreciation as well as taxation benefits. Equity Linked Savings Schemes (ELSS) is also a form of savings scheme where you in invest in mutual funds but with the same tax benefits. The Equity Linked Saving Scheme is the mutual fund that has the lock-in period of three years from the date of investment. It invests primarily in equity or equity related instruments. For better understanding: Mutual funds are companies that pool the investment of its investors and buy securities such as equities, debts etc. An Equity Linked Savings Scheme (ELSS) is a mutual fund equity scheme, that offers wealth creation over the long-term along with tax benefits under Section 80C of the Income Tax Act, 1961. An Equity Linked Savings Scheme (ELSS) is an open-ended Equity Mutual Fund that not only helps you save tax, but also gives you an opportunity to grow your money.