ABC Home
Loans
Investments
Insurance
Payments
Download ABCD

Experience finance made simple on the new ABCD app!

Scan to Download the App

Playstore Appstore
1800-270-7000

Aditya Birla Sun Life AMC Limited

Aditya Birla Sun Life AMC Limited

    Our Menu
    Invest with Us
    Metaverse

    Aditya Birla Sun Life AMC Limited

    ×

    Tax Saving Mutual Funds - ELSS Funds

    Tax Saving Mutual Fund or Equity Linked Saving Scheme (ELSS) Fund is an ideal investment option for individuals looking for tax-savings on their investments without sacrificing the opportunity for long-term capital gains. If you are seeking tax relief, you can invest up to ₹1,50,000 in an ELSS mutual fund and receive tax savings of up to ₹46,800 as per Section 80C of the Indian Income Tax Act, 1961*.

    *- this is considering income in the 30% tax bracket and 4% cess – for individuals with income in excess of INR 50 lacs and up to INR 1cr – the benefit owing to impact of surcharge would increase to INR 51,480 and for those with income in excess of INR 1cr – the benefit would increase to INR 53,820.



    Why our Tax Saving Solution makes sense for you?


    • • Offers tax savings of up to ₹46,800*
    • • Long term growth potential
    • • Provides the dual advantage of long-term gains and tax savings
    • • Flexibility to invest through a lump sum or monthly instalments


    Who should invest in Tax Saving Solution?


    • • High-income individuals seeking tax relief
    • • Investors looking for better returns
    • • Investors planning to invest for long-term goals (retirement, child’s education, higher studies)
    • • Individuals with an investment period of at least 3 years or longer


    Frequently Asked Questions

    Tax saving solution includes Equity Linked Savings Scheme (ELSS). ELSS is an equity oriented mutual fund that comes with a lock-in of 3 years and provides tax saving benefits under section 80C of the Indian Income-tax Act, 1961.

    Investing in ELSS can reduce your taxable income by up to INR 1,50,000. This can provide you with a direct tax benefit of up to INR 46,800* per year u/s 80C of the Income-tax Act, 1961.

    While tax saving is an important goal of this fund, the USP of ELSS is that it actually provides a dual benefit of tax saving along with capital growth of your investment.

    ELSS is suitable for you if you are looking out for a tax saving investment avenue which can also provide you potential capital appreciation on your investment over the long term.

    ELSS can be beneficial in the following ways –
    • Lower lock-in period of 3 years vis-à-vis 5 years in most other tax saving instruments
    • Higher potential for returns – active, market linked returns
    • Possibility of earning dividends; if dividend option is selected

    No. ELSS is subject to a lock-in of 3 years, thus is it cannot be redeemed after a year.

    No. The 3-year lock-in period is the minimum time frame for which you need to stay invested. You can continue to stay invested in the ELSS even after completion of the lock-in period. In fact, as it is an equity-oriented fund, it has the potential to earn better returns over a longer time period.

    The taxation of these funds is the same as the taxation of equity funds. As they can only be redeemed after 3 years, only long-term capital gains (LTCG) tax shall apply. LTCG tax is only applicable if the gains exceed INR 1 lac – being taxed at 10%.

    Popular Search

    Mutual Funds Investment Equity Mutual Funds Debt Mutual Funds Hybrid Funds Index Funds ETF FoF Target Maturity Funds Tax Saving Mutual Funds PSU Equity Fund Small Cap 50 Index Fund Structure of Mutual Fund What is Mutual Fund How to Invest in Mutual Funds SIP Full Form What is Equity Fund What is Debt Fund What is Hybrid Fund What is Index Fund? ETF Full Form Types of Mutual Funds Systematic Transfer Plan Systematic Withdrawal Plan Mutual Fund Tax Benefits Expense Ratio Exit Load IDCW AUM AMC Bank Nifty FinNifty Nifty XIRR Market Mood Index NFO Folio Number What is Investment? What is Tax? CAGR