What is difference between ELSS and tax saving mutual fund?
What is difference between ELSS and tax saving mutual fund?
An ELSS is also a mutual fund that offers tax deductions of up to Rs 1,50,000 a year under Section 80C of the Income Tax Act, 1961. The only difference between an ELSS and other mutual funds is that the later doesn’t offer tax benefits.
Is SBI Bluechip fund tax saver?
These funds have a lock-in period of three years. When you invest in SBI MF ELSS Funds, you become eligible for a tax deduction of up to Rs 1.5 lakh under Section 80C of the Income Tax Act. In this, the amount invested by you gets deducted from your taxable income. It reduces your overall tax liability.
Does SBI Bluechip fund comes under 80C?
ELSS is a type of Mutual Fund which allows you to claim for income tax deduction. You can save up to ₹ 1.5 lakhs a year in taxes by investing in ELSS, which is covered under Section 80C of the Income Tax Act, 1961. Since these funds are managed by professionals, you need not worry about timing the market.
Which mutual fund is best for tax saver?
The table below shows the top-performing ELSS mutual funds based on the past five year returns:
| Mutual fund | 5 Yr. Returns | Min. Investment |
|---|---|---|
| Canara Robeco Equity Tax Saver Fund | 20.45\% | ₹500 |
| Mirae Asset Tax Saver Fund | 21.82\% | ₹500 |
| JM Tax Gain Fund – Growth | 19.21\% | — |
| DSP Tax Saver Fund – Direct Plan – Growth | 18.42\% | ₹500 |
Is equity fund and ELSS same?
ELSS funds have a lock-in period of three years. Whereas, the equity mutual funds, have no lock-in period. But, if you are looking for an investment option that gives you easy liquidity option, you can consider investing in equity mutual funds; you can pay the exit load, and redeem your investment at any time you want.
Is SBI Blue Chip mutual fund tax free?
Tax benefits of investing in SBI Bluechip The long term capital gains, over and above Rs 1 lakh, made on sale of units after 1 year from the date of allotment will be taxable at the rate of 10\% (without indexation).
Is SBI SIP tax free?
SIP is a “Systematic Investment Plan” where an investor invests a particular amount at a regular interval such as quarterly, monthly or weekly. The Systematic Investment Plans can be started from as low as Rs 500. However, the investors with tax-saving in mind should note that all SIPs are not tax-free.
Which mutual fund is tax free?
Long term capital gains upto Rs 1 Lakh is totally tax free. Dividends paid by equity mutual funds are tax free in the hands of the investor but the AMC pays dividend distribution tax (DDT) at the rate of 11.648\%.