FundsIndia Archives: Top Blogs on Tax-saving

‘FundsIndia Archives’ is a series where we put together the blogs that all of you’ve enjoyed reading over the years under popular and specific topics. This week, we have compiled a list of the top blogs on tax-savings.To take advantage of section 80C, there is no better option than Equity Linked Saving Schemes (ELSS). They let you save on taxes and build wealth at the same time. In this list, you will ways to leverage ELSS funds as well as how to plan your taxes over the financial year and the funds you should consider.

• Right way to save tax

 Section 80C of the Income Tax Act of India specifies certain investments which allow you to avail income deduction and reduce your tax liability. ELSS mutual fund, also known as tax saving mutual funds, is one such specified instrument. Investments can be made anytime during the financial year to gain this deduction. However, to assess your tax burden, employers might ask you to submit your tax planning a few months prior to the financial year-end. And this is typically the time when investors rush to make their investments. Read more

• Why 80C tax-saving needs planning

 When the financial year-end nears, a lot of you may be in a hurry to make tax saving investments. Company deadlines to submit proofs may also be on your mind. All this means, you might just end up finding some scheme that qualifies for deduction. But if you realise the amount of your total income that goes into saving taxes, you would pay more attention to where you are investing, rather than finding the first option to save tax. In this regard, here are a few things that you need to keep in mind. Read more

• SIP your way to tax-saving through ELSS Funds

SIPs (Systematic Investment Plans) are increasingly getting popular as the preferred mode of investment today. Investors are ready to keep aside a minimal amount every month for SIPs, rather than investing lump sums. When you are given a provision to make good returns through a regular, timely, and affordable method, who would not prefer it? Read more

• How to save tax on salary and build your investment kitty

At the beginning of the tax season, it’s likely that your company’s accounts/tax department will start asking you to submit your ‘tax-saving’  proof, if you have to escape or reduce your tax burden. A hastily prepared rent receipt and an express visit from an insurance agent and you may think your job is done. Folks who take the ‘follow the herd’ approach, miss out on smart ways to save tax and earn superior returns. Avoid falling into that groove. First, know a few facts about the common ways of saving on taxes. Read more

• FundsIndia Recommends: Tax-saving Funds

If you are game for equity investing, then tax-saving funds (ELSS) provide you the required deduction under Section 80C of the Income Tax Act, besides the benefit of capital gain exemption at the time of redemption. This is also one of the quickest options you can resort to, if you are convinced, to gain the benefit before the year ends. Read more

• Why should you invest in ELSS

By now, most of you might agree that Mutual Funds Sahi Hai. You now probably know that mutual funds are a great way to build wealth, but did you know they are an even greater way to save on taxes? Under Section 80C of the Income Tax Act, 1961, you can invest up to Rs. 1,50,000 in instruments like PF, PPF, ELSS, NSC, 5-year bank FDs, ULIPs, Senior Citizen Saving Schemes and more, to claim deductions on Income Tax. At FundsIndia, we believe that more equity Linked Savings Schemes (ELSS), otherwise known as tax-saving mutual funds, are the best way to save on taxes. Read more

• FundsIndia Explains: ELSS funds

An ELSS is a mutual fund that invests in stocks, therefore making it ‘equity-linked’. A mutual fund is, of course, a financial instrument that pools together money from different investors and invests in equity or debt securities. An ELSS scheme is among the financial instruments that allow you to save tax under Section 80C. Remember that a fund should be specifically classified as ELSS by the fund house – all equity schemes are not automatically tax-deductible. Each investment you make in an ELSS is locked for 3 years. That is, you will not be able to sell that investment for three years. While you can invest any amount in ELSS, you can only claim up to Rs 150,000 for your tax purposes.Read more

• All you wanted to know about ELSS funds

It is true that ELSS involves taking higher risk that is inseparable from stock market investing. But there is a wide range of ELSS schemes and thus you can always find a fund that suits your risk profile. For example, if you do not want too much volatility, you can go for funds that stick to stable blue-chips or move quickly into cash when markets are uncertain. If you want higher returns and don’t mind risk, you can opt for funds that pick up smaller-sized companies instead of blue-chips. Further, equity risk reduces the longer you hold. The lock-in period already introduces risk mitigation and holding for longer than that will further reduce risk. Read more