Table of Contents
Is SIP exempted from income tax?
If an investor is investing through SIPs in equity funds or balanced mutual fund schemes, then all the gains made after one year will be considered as long-term capital gains that will be completely tax-free. For example, an investor invested Rs. 10 Lakhs and got a profit of Rs. 20 Lakhs for ten years.
Can I show sip in 80C?
Which SIP is tax free under section 80c? 80C allows deduction upto Rs 1.5 lakh for investment made in ELSS (equity linked savings scheme). You can also start SIP for ELSS mutual funds for which deduction upto Rs 1.5 lakh will be available u/s 80C.
How much I can invest to save income tax?
Rs. 1.5 lakh
The most popular tax-saving options available to individuals and HUFs in India are under Section 80C of the Income Tax Act, Section 80C includes various investments and expenses you can claim deductions on – up to the limit of Rs. 1.5 lakh in a financial year.
Which mutual fund is tax saver?
The table below shows the top-performing ELSS mutual funds based on the past five year returns:
Mutual fund | 5 Yr. Returns | |
---|---|---|
Canara Robeco Equity Tax Saver Fund | 20.45\% | Invest Now |
Mirae Asset Tax Saver Fund | 21.82\% | Invest Now |
JM Tax Gain Fund – Growth | 19.21\% | Invest Now |
DSP Tax Saver Fund – Direct Plan – Growth | 18.42\% | Invest Now |
How do I submit proof 80C?
Investment Proof: Simply submit a copy of your FD receipt or print out your FD receipt/statement from your bank website (net banking). Insurance Policy: Life Insurance Premiums are tax-deductible up to Rs 1.5 lakh per annum under Section 80C.
What is tax saving SIP?
Comparison of ELSS with SIP
Parameter | ELSS | SIP |
---|---|---|
Investment vehicle in itself | Yes | No |
Tax deductions | Yes, up to Rs 1,50,000 a year | Yes only when being invested in ELSS |
Lock-in Period | Three years | No lock-in if not being invested in ELSS |
Switch Option | Not possible until the lock-in period has elapsed | Possible if not being invested in ELSS |
How to save money from taxes by investing in SIP?
Also, the SIP investments are liable for deductions under Section 80C of the income tax Act. So, all your questions about how to save money from Taxes have found a solution. By investing in a SIP, one can save somewhere between INR 15, 000 to INR 45,000 in taxes per year.
What are the tax benefits of SIPs?
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.
How can I start an SIP in tax-saving ELSS?
So, start an SIP in tax-saving ELSS by providing an ECS mandate to deduct a fixed amount from your bank account every month to invest in mutual funds. Bajaj Finserv brings you pre-approved offers for personal loans, home loan, business loans and a host of other financial products.
What is Systematic Investment Plan (SIP)?
With Systematic Investment Plan (SIP), you can save on your taxes and also get higher returns on your investment. Under Section 80 (C) of the Income Tax Act, 1961, investing in Equity Linked Savings Scheme (ELSS) through SIP enables you to claim a deduction of Rs 1.5 lakh from your taxable income.