ELSS

Equity Linked Saving Scheme (ELSS)

Invest in Equity Linked Saving Scheme (ELSS) to avail tax benefit under Sec 80C of the Indian Income Tax Act, 1961

Tax deduction up to Rs. 1.5 lakh u/s 80c.
3 years lock-in period (lowest compared to PPF & bank FDs)
Growth potential of equity
Tax free dividends
No tax on long-term capital gains

How does deduction in 80c work

Other tax saving instruments

Why ELSS funds are the best for you

Superior returns compared to other tax-saving products

Lowest lock-in period of three years

Long-term capital gains are tax-free

Monthly investments on a pre specified date in mutual funds is possible through systematic investment plan (SIP). An investor has the option of investing monthly in equity linked savings schemes with a minimum investment of Rs 500.

Top Performing ELSS Tax Saving Mutual Funds

Mutual Fund Scheme	NAV	1 yr	3 yr	5 yr
Reliance Tax Saver (ELSS) Fund(G)	50.20	17.1	34.2	20.6
Escorts Tax(G)	73.79	32.0	32.4	13.0
Axis LT Equity Fund(G)	33.33	9.9	31.1	21.9
IDBI Equity Advantage Fund-Reg(G)	21.98	9.2	29.8
Birla SL Tax Relief '96(G)	23.90	13.6	29.1	19.0
Birla SL Tax Relief'96 Fund- (ELSS U/S 80C of IT ACT)-(G)	23.90	13.6	29.1	19.0
DSPBR Tax Saver Fund-Reg(G)	37.99	21.4	28.5	20.0
Invesco India Tax Plan(G)	39.29	14.0	28.5	18.1
Birla SL Tax Plan(G)	30.05	12.9	28.1	18.4
L&T Tax Saver Fund(G)	30.43	20.6	27.7	16.7

Rajiv Gandhi Equity Savings Scheme (RGESS)

Rajiv Gandhi Equity Savings Scheme (RGESS) is a tax saving scheme for investment in equity in India. It is primarily launched to encourage investment in capital markets.

Introduced in November 2012, under Section 80CCG, the income ceiling of RGESS increased to 12lakhs in 2013-14. The investor is entitled to a 50% tax deduction in the maximum investable amount of Rs.50,000 per financial year for three consecutive assessment years.

RGESS provides additional tax benefits as compared to other tax saving schemes under the Income Tax Act
Investment amount can be paid in instalments
Dividend payments are tax free with facility for pledging stocks after the lock-in period
Limited for new investors where they can avail benefits for three consecutive years
Lock-in-period of three years but investor can trade after completion of one year.
RGESS has the potential to diversify the investor portfolio leading to more productive "capital formation" assets. The success of this scheme will enable transfer of assets from traditional savings instruments such as bank deposits and FDs to the capital markets.

Save your Income Tax with National Pension Scheme (NPS)

Save your Tax today and secure your pension tomorrow

Finance Minister Arun Jaitley in Budget 2015-16 introduced an additional income tax deduction of Rs 50,000 for contribution to the New Pension Scheme (NPS) under Section 80CCD. NPS is regulated by Pension Fund Regulatory and Development Authority.

Features & Benefits

More Tax Saving Option 1

Tax deduction of up to Rs. 50,000 over and above the 80c limit
Deduction 2

Deduction of employer contribution can be claimed up to 10% of salary, over and above the Rs. 2 lakh limit.
Tax Saving 3

Tax saving of up to Rs. 15,000, Rs. 10,000 and Rs. 5000 if you are in 30%, 20% and 10% tax slabs respectively
Transparency 4

NPS is transparent and cost effective system wherein the pension contributions are invested in the pension fund schemes and the employee will be able to know the value of the investment on day to day basis.
Fund options5

Individuals also have an option to switch over from one investment option to another or from one fund manager to another. The returns are, however, totally market-linked. Investors have the option for choosing stocks, government bonds and other securities as their asset choice. But the equity part of the allocation cannot exceed 50 per cent.
Portability 6

Each subscriber is identified by a unique number and has a separate Permanent Retirement Account Number (PRAN) which is portable i.e., will remain same even if he/she gets transferred to any other office.
Withdrawal option 7

At the time of withdrawal 40 per cent of the accumulated pension wealth is mandatorily used for purchase of an annuity for the monthly pension of the subscriber and the balance is paid as a lump sum payment to the subscriber. Annuity service providers are responsible for delivering a regular monthly pension to the subscriber after exit from the NPS.
Early Withdrawal 8

Subscribers can exit from NPS even before attaining the age of 60 by using at least 80 per cent of the accumulated pension wealth for purchase of an annuity for providing for the monthly pension. The balance is paid as a lump sum payment to the subscriber.
Withdrawal Tax 9

NPS investment and the return on invested amount are tax free wherein Withdrawal amount and pension is taxable
Tier 1 & Tier 2 account 10

There are two types of account - Tier 1 account is a non-withdrawal account whereas in Tier 2 account, the amount can be withdrawn as per the wishes. Minimum amount of contribution for Tier 1 is Rs.500 p.m. and Rs.6000 per annum. And for Tier 2, minimum contribution is Rs.250 p.m. and Rs.2000 per annum, however, an amount of Rs.10,000 is required at the time of account opening.

Benefits of NPS

*Rate of Interest may vary depending upon the market

Reduces Tax Liability over and above the standard available limits

Dual Advantage of NPS

Higher returns when invested in NPS due to lower tax liability

Tax Free bonds

Tax free bonds issued by Government of India are exempt from tax under the IT Act, 1961.

These bonds can be applied in physical or dematerialized mode
These bonds come for a tenure of 10, 15 and/or 20 years
These bonds can be traded on the exchange if applied in demat mode
There is no cap on investment made in these bonds
HUF to be eligible for higher rates the maximum investment amount is Rs.10 Lakhs

CLIMB THE RIGHT LADDER

invest in elss mutual funds and nps to save tax along with long term benefits