Is Tax applicable on ELSS MFs?

[life2007]

Hello

Just couple of months back in February, I invested 12K in Birla Tax Relief'96 ELSS fund.

Though it was mentioned as a Growth fund, they wrote to me later that whenever the company has surplus amount it gives out by "Dividend Payout" mode.

Yesterday I got Rs. 1860 from them against the investment of 12K.

I was always under the impression that ELSS has a lock in period for 3 years and no amount would be paid during these 3 years. Actually to be honest I am confused.

Am I suppose to consider this amount (Rs. 1860/-) for tax purposes ?

Please advise

Thanks

Jeet

 

[nagakiran]

"Dividend payout" is tax free. We need not pay any tax on that amount.

 

[life2007]

Hi

Thank you for this input

"Dividend payout" is tax free. We need not pay any tax on that amount.