Tax Saving through ELSS Mutual Fund

Tax Saving through ELSS Mutual Fund

1. EL SS (Equity Linked Savings Scheme) are diversified equity funds with a lock-in period of three (3) years.

2. Income Ta x benefits under Section 80C of the Income Tax Act, 1961 according to which investment upto Rs. 1.5 lakhs (FY 2015-16)  in ELSS is deductible from taxable income.

3. ELSS helps in saving considerable amount of taxes if planned efficiently as shown in the table below.

Annual Taxable Income (Rs)	Tax before investment in ELSS (Rs)	Maximum Amount to invest in ELSS (Rs)	Taxable income post ELSS investment (Rs)	Tax after Investment (Rs)	Savings (Rs)
4,00,000	15,000	1,50,000	2,50,000	0	15,000
6,00,000	45,000	1,50,000	4,50,000	20,000	25,000
8,00,000	85,000	1,50,000	6,50,000	55,000	30,000
10,00,000	1,25,000	1,50,000	8,50,000	95,000	30,000
12,00,000	1,85,000	1,50,000	10,50,000	1,40,000	45,000

The above information has been given for reference purposes only. Investors are advised to consult their own tax/financial adviser before taking any decision on investments.

The tax calculations shown above are as per the income tax slab applicable to Individual/HUF assessee for  FY 2015-16 exclusive of cess and surcharge.

Mutual Fund investments are subject to market risks,

read all scheme related documents carefully.

Src: www.sbimf.com

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