As we approach the last leg of another financial year, tax saving options that promise good returns are in the limelight for investors who are in a rush to save tax, and submit tax declarations.
Wealth managers say diversified equity funds that come with additional tax benefits could be a good option as these equity linked saving schemes (ELSS) comes under the section 80C and investment of upto Rs 1.50 lakh in these tax saving mutual funds can be deducted from your gross total income.
These funds have a 3-year lock-in period from the date of investment. However, there is no restriction on redemption once the lock-in period is over. “It is a good option for those seeking tax benefits along with higher returns,” said Naveen Kukreja, managing director at Paisa Bazaar.
Renu Pothen, research head, Fundsupermart.com, said, “The investor can invest upto Rs 1,50,000 in a tax saving fund and save upto Rs 46,350, if he/she falls under the highest tax bracket.”
