ELSS: In BOI AXA Equity Linked Savings Scheme, you can save Rs 46,800 tax under Section 80C of Investment Income Tax by investing a maximum of Rs 1.5 lakh in a financial year.
Everyone knows to save tax but it is difficult to invest in better scheme to save tax. Taxpayers always take measures to save their tax, under the provisions found under section 80C of Income Tax. There are several investment options to save tax under this section. Most investors consider saving tax under Equity Linked Saving Scheme (ELSS) a good investment. Let’s know everything about it.
Under the BOI AXA Equity Linked Savings Scheme, you can save a maximum of Rs 1.5 lakhs in a financial year under Section 80C of the Investment Income Tax, with current tax rules of 4 per cent cess, and Rs 46,800 tax every year. The tax savings of Rs 46,800 have been calculated at the highest tax bracket ie 30 per cent.
Invest in BOI AXA Equity Linked Savings Scheme and Save Tax under Section 80C of Income Tax, up to Rs. 46,800/-^
Invest NOW!! pic.twitter.com/LmUvsNZsMX
— Bank of India (@BankofIndia_IN) February 7, 2021
This is how tax saving will be
ELSS is an equity mutual fund category, in which tax is exempt under section 80C of income tax on investment. The tax savings calculation of Rs 46,800 is based on the highest tax slab. By adding the existing 4 per cent education cess on tax including cess, there will be 31.2 per cent or Rs 46,800 of tax saving on Rs 1.5 lakh per year.
Benefits of equity linked saving scheme
>> The lock-in period of ELSS fund is of three years. The 3-year lock-in means that you cannot sell the units purchased before the completion of 3 years from the date of purchase.
>> The return on investment in ELSS and the amount received from redemption are also completely tax free.
>> Investing in equities effectively provides better returns that are higher than the regular inflation rate.
>> Investment through mutual funds has been facilitated through SIP.
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