The ELSS is considered as the best tax saving plan for all income taxpayers across India. You ask why?
Almost all good tax saving schemes have the fruitful feature of tax benefit under section 80C. It is also known by its feature acronym as ‘EEE’. This means that ELSS is exempt at the time of investment, accumulation, and withdrawal.
It delivered the best return in the last five years. Not only this, this avenue of investment has the shortest lock-in period.
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The gain from ELSS will be taxed at 10%. However, other sources like Ulips and PPF will be tax-free. This might be a deterrent for many investors to invest in the ULIPS. But there is always a good side too. An investor must invest in different avenues for a varied portfolio.
In the light of stupendous potential in the Indian stock market, the bourses are only meant to grow in the long term. Considering that this is a three-year lock-in period, the investor will be able to absorb the profits. ELSS has a strong chance of giving investors a higher return amidst the developing economy of India.
ELSS is more convenient and tailor-made as far as the Ulips are concerned. It also gives an opportunity to the investors to earn more in the long term or just at par with other investment avenues.
ELSS leaves room for swapping options. If a scheme is not giving returns according to the expectation of the investor, he can also change the scheme.
The Indian economy and stock markets witnessed the bloodshed after the Union Budget 2018 in which FM Arun Jaitley announced an LTCG on any long-term benefit arising from investment in the Indian stock market after January 31, 2018. The markets are now recovering and seeing an upward trend. So are you ready to invest in the best income tax saving plan?
