ELSS (Equity Linked Savings Scheme)

 ELSS 

ELSS schemes function in accordance with ELSS guidelines issued by CBDT under Section 80C of the Income-tax Act, 1961 to provide tax savings on investments in equities. The amount you invest in ELSS is deducted from your taxable income. This way, you lower the amount of income tax you need to pay.

Benefit of  ELSS 

ELSS is a type of mutual fund investment that qualifies for tax deductions u/s 80 c of IT Act ,1961

open-ended fund which has a 3 year lock-in period 

With the growth potential of Indian equity markets from a long term perspective, investments in ELSS to save taxes could just turn your wealth creation dream into reality.  

lets see other alternative tax saving instruments

There are several financial instruments in savings and investments that qualify for tax deduction under Section 80C of the Income-tax Act, 1961. These include provident fund, PPF, premiums towards life insurance policies, NSC, ULIPs, bank FDs with 5-year lock-in, home loan repayment, tuition fees for children with limits besides ELSS. While some of these are mandatory for salaried people like PF.



Note: The comparative of ELSS and other tax saving products shown in the table above are strictly not comparable. The same is for illustrative purpose(s) only. Investors are advised to consult their tax/financial adviser before taking any investment decisions. Source: # www.indiapost.gov.in;  The rates are annualized.



The Power of Equity If you invested ₹10,000 every year in PPF, a total ₹2.2 lakhs would be worth ₹6.4 lakhs after 22 years. However, if similarly you invested in NIFTY 50, which represents equity investments, the corpus would be worth ₹13.3 lakhs, twice that of PPF! Such is the power of equity.

Note: The comparative of ELSS and PPF shown in the table above are strictly not comparable. The same is for illustrative purpose(s) only.

ELSS is the only option with significant equity exposure of more than 80 per cent, which makes it at par with any diversified equity fund. The added advantage of the three-year lock-in with investments makes it the tax-saving option with the shortest lock-in.

More power to ELSS  

Diversification
Shortest lock-in period compared to other tax saving options
Flexibility to invest online and various other modes
To enhance returns over long term ELSS takes exposure more in to Equity markets
Taxation (can avail upto 1.5lac in financial year u/s 80c)
Managed by professionals . No need to worry about mkt ups and downs

Conclusion ELSS is a tax saving investment which checks the box for investors who are not just looking to save tax, but grow their wealth simultaneously. 

To know more reach us on pcswealthadvisers@gmail.com 





PCS CAPITAL were first generation entrepreneurs in financial services . It was formed with foundation stone for creating long-term wealth for the investors through various financial products like Mutual fund s , Insurance , Fixed deposits and Alternate Asset products . We help you understand your financial objectives and make appropriate plan to realise them with proper risk management. rnYou can leave your contact details for professional help in your investment journey.

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