Do you feel you are paying a lot of Income Tax and want to reduce it ?
You can save Taxes by investing in ELSS Tax Saving Mutual Funds under Section 80c
The government of India allows all individuals in India to invest upto Rs 150,000 in ELSS funds every year which can be claimed as a deduction under section 80c to save Income Tax.
You can save upto Rs 45,000 that will otherwise be paid as taxes to the government if you don’t make any tax saving investments.
Here are some examples.
- If you earn between Rs 2.5 to 5 lakhs, your tax slab is 10% and you can save ~ Rs 15,000 in taxes
- If you earn between Rs 5 to 10 lakhs, your tax slab is 20% and you can save ~ Rs 30,000 in taxes
- If you earn more than Rs 10 lakhs, your tax slab is 30% and you can save ~ Rs 45,000 in taxes
What this means is that if you are in the 30% tax bracket, you don’t have to pay 30% tax on the tax saving investment of Rs 1.5 lakh that you make – Which amounts to a saving of ~ Rs 45,000 ( 30% of Rs 1.5 lakhs )
However, if you are unable to save and invest Rs 1.5 lakhs from your income, you can save a lower amount and still save tax.
Compared to other Tax Saving options, elss funds have the following advantages:
Lowest lockin period of 3 years ( Compared to 5 years for FDs and 15 years for PPF )
Better Interest ~ 15 to 20% average returns ( FDs, PPF / Insurance give only about 6 to 8% returns )
Note: If you have declared to your company’s finance department at the beginning of the year that you will make tax saving investments but haven’t done so yet, you maybe liable to pay extra taxes at the end of the year.
How to Start Saving Tax ?
You can make tax saving investments either via a Small Monthly Investment or as a One Time Lumpsum Investment
If you don’t know How much And Where to Invest for Tax Savings, we can help.
- We Review your income & existing investments
- Determine How much tax you can potentially save
- Recommend the best tax saving ELSS Mutual Funds
- Help you make your Tax Saving Investments
Enter your details below to know more and get started.