ELSS (Equity Linked Saving Scheme) General Discussions

[shreyadr]

No Knowledge To Any One ?

[pkjha30]

Originally Posted by shreyadr

i wish to invest in MF's for the tax purpose ( reducing the tax burden )

pls. let me know
1) it is mentioned that dividend income is exempted but what abt. the original investment ?
2) all the MF investments will get rebate ? or only tax savers funds ?
3) if yes, how much investement is allowed ?
4) I heard that
a) tax saver schemes has a compulsory lockin period of 3 yrs. and
cannot be invested thru SIP...these schemes gets rebate.
b) while other schemes who can be invested thru SIP ...won't be
calculted for rebate purpose.

pls. guide me on this tax rebate as well tax exemption concept. as i need to invest before 20th Dec,07 and to provide my investment details to my office.

Hi

1.Original investments in Taxsaver MFs will also qualify for exemption subject to overall limit od Rs 100000
-Dividends will be exempted.
-Capital gains will be exempted.
2.Only tax saver MFs will get tax exemptions
3. Maximum you can invest in tax savings schemes put all together Rs 100000.If you invest in infrastructure Bonds of Govt of India or such entities exemption limits may be higher. But this needs to be checked and also to find if such schemes are open for subscriptions. Such scheme which I know is REC Bonds and NHAI bonds. Rebate is under section 54EC of IT ACT
check this link
http://www.cainindia.org/news/7_2006..._1st_july.html


Three year lock in period is enforced in investments to all such schemes.

4. If any SIP MF with Taxsaver advantage is available the same can be used for tax saving purposes.
DSP Merrill Lynch Tax Saver Fund is one such example. You can check money control website for New Funds Offer of such schemes

Hope this partially answers your question. Other members may correct me if any factual mistakes are there.

Pankaj

[smrane]

To save tax I need to invest, but I am confused where to invest I was thinking about ULIP but after reading people's opinion about ULIP, I am confused, would any one advise me where I should invest. My Investment Plan is as under

I want to secure myself (Insurance) 15 lac, and my yly investing capacity is near about 80,000/-

[GlobalGyan]

Remember that in SIP , each SIP will be conisdered a fresh investment, and you would need to wait for 3 years to sell the SIP...

[pkjha30]

Originally Posted by GlobalGyan

Remember that in SIP , each SIP will be conisdered a fresh investment, and you would need to wait for 3 years to sell the SIP...

Yes, You are right. It will be three years lock-in from the date of investment in SIP. Investment during any Assessment Year will be counted for rebate/deduction within overall limit of Rs. 100000 . thanks for pointing it out.

pankaj

[Vicky78]

Based on your risk appitiete (for 80C) split your money across

Term Plan
ELSS
5 year Taxable FD or NSC

[mrindia]

Of course u shud nt mix life insurance wid investment. As advised by vickey, opt for term end plan & elss. In addition, u shud also invest som amm in secure mode- like PPF.

[hpb]

Hello, I just wanted to know if I can redeem part amount from any ELSS scheme such as Magnum Tax Gain? For example, I have a SIP for one of the ELSS funds which started two years ago. As of today its value is 38000. Can i redeem say 15000 from this today?

[life2007]

Hello Friends !!

Well, I am in bit of mess now !

I never thought I would be able to cross the Tax Limit this year so had basically nothing to worry. But now I find, I need to save 1 lac for avoiding tax . Wisely though I managed to put 50K in PPF for saving purpose and now am in dilemma about the balance 50K in just 3 months from now.

I can still put 20K in PPF so that it reaches the maximum limit of 70K.

Could you please advise how to go about for the balance 30K in 3 months. I will be putting in ELSS MF for sure but again investing in lumpsum and not through SIP route in the current market situation, does not seem a good idea just for saving tax.

Let me say of example if I put 3K for next 3 months in an ELSS MF, it still reaches only 9K. So What next ????

Please advise, should I put in 2 or 3 ELSS or should I go for SIP of 10K for the balance 3 months in one good ELSS...

Thanks

Jeet

[mrindia]

Originally Posted by hpb

Hello, I just wanted to know if I can redeem part amount from any ELSS scheme such as Magnum Tax Gain? For example, I have a SIP for one of the ELSS funds which started two years ago. As of today its value is 38000. Can i redeem say 15000 from this today?

ELSS has 3 yr lock-in period. Ur investment is 2 yrs old that too via SIP. U can have partial/total withdrawl from ur 1st SIP ammount whenever it completes its 3yr lock-in.