FINANCEOUTLOOKINDIAMAY, 20248ELSS funds are equity funds that allocate a significant amount of their assets to equities or equity-related products. ELSS funds are also known as tax saving schemes since they provide a tax exemption of up to Rs 150,000 from your annual taxable income under Section 80C of the Income Tax Act during the previous tax regime.In recent years, many taxpayers have turned to ELSS programs to take advantage of tax benefits.If you invest in ELSS schemes, you can get a tax break on the amount invested up to Rs 150,000. Furthermore, the income earned under this scheme at the end of the three-year period will be considered Long Term Capital Gain (LTCG) and taxed at 10 percent (if the income exceeds Rs 1 lakh).Now that tax season has begun, Section 80C remains a popular tax-saving strategy in the hands of taxpayers who prefer the old tax regime, Here, the ELSS is a popular option. Furthermore, Section 80C of the Income Tax Furthermore, the act requires all tax-saving instruments to be locked in for a set number of years. ELSS provides the shortest lock-in period of all of these choices, as well as the potential for better long-term gains."If you invest Rs 1.5 lakh in an ELSS fund in the financial year and fall under the highest tax bracket (Rs 10 lakh and above), you can save Rs 46,800 in taxes," stated Value Research in a research note.The Section 80C tax deduction works by reducing your taxable income to the amount of your investment, up to a maximum of Rs 1.5 lakh. Why ELSS?"ELSS schemes are mutual funds that provide exposure to a variety of underlying markets, including large-cap, mid-cap, and flexicap. These plans are advised for tax-aware individuals with a debt-heavy asset portfolio. ELSS enables members to invest in the stock market TAX SEASON 2024: HOW TO MAKE THE MOST OF YOUR ELSS INVESTMENT
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