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Can SIP be declared under 80C?
You can initiate an SIP into an ELSS, the most popular tax-saving investment under Section 80C of the Income Tax Act, 1961. Every SIP instalment into an SIP counts towards tax deductions under Section 80C. You can claim a tax rebate of up to Rs 1,50,000 and save up to Rs 46,800 a year in taxes.
Does mutual fund comes under 80C?
ELSS mutual funds are the only class of mutual funds that are covered under Section 80C of the Income Tax Act, 1961. By investing in an ELSS, you are entitled to claim a tax rebate of up to Rs 1,50,000 a year.
Does SIP come under tax exemption?
SIPs can be one of the best tax saving instrument with high returns on your investments. You can claim a deduction of up to Rs. 1.5 lakh from your taxable income for investing in ELSS through SIPs under Section 80(C) of The Income Tax Act, 1961. With highest tax slab of 30\%, you can save up to Rs.
What is the lockin period for SIP?
3 years
There are no lock-in periods for SIP route of investing. Expert tip: Only Tax Saving Mutual Funds have a lock-in period of 3 years and not other MFs.
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.
What is basic deduction 80C?
Income tax department allows reducing of the taxable income of the taxpayer in case the taxpayer makes certain investments or eligible expenditures allowed under Chapter VI A. 80C allows deduction for investment made in PPF , EPF, LIC premium , Equity linked saving scheme, principal amount payment towards home loan.
Does investing in SIP come under Section 80C?
investing in SIP may or may not come under Section 80C as it depends on what category of fund/s you are investing in. For your information, only if you invest in ELSS mutual funds through SIPs that you can avail the benefit of Section 80C. Read more about ELSS funds here – What is Equity Linked Savings Scheme…
Are sips in elsss eligible for Section 80C?
Only investments in Equity Linked Savings Schemes (ELSSs) or tax saving mutual fund schemes qualify for a tax deduction under Section 80C of the Income Tax Act. Unfortunately, none of your Systematic Investment Plans (SIPs) are in ELSSs. Therefore, you cannot claim any tax deduction on your investments under Section 80C.
Do SIP investments in ELSS qualify for a tax deduction?
Yes, SIP investments in the ELSS qualify for a tax deduction under section 80C of the Income Tax Act, 1961.
What is Section 80C of income tax?
Section 80C Mutual Funds Section 80C was introduced by the Finance Act, 2005. This section mainly provides deduction from the total income in respect of various expenditures / payments, investments on which a tax deduction was earlier available under Section 88. The total deduction under this section is limited to up to Rs. 1.5 lakh only.