Axis Mutual Fund has published two new videos as part of its investor awareness program #TaxFever. Both the videos take a humorous approach to convey a serious and important issue effectively.
Through characters, these videos highlight how investors keep postponing their tax planning until March. As a result, such investors often end up parking money in tax saving vehicles giving suboptimal returns, instead of investing in ELSS that provides benefits of both tax saving and wealth creation with attractive returns.
One of the videos shows an investigator interrogating a couple who has ‘tax fever’, a disease where investors delay tax planning or fail to create wealth from their tax savings investments. The other video shows a news anchor grilling a salaried employee about his ‘tax fever’.
At the end, both videos ask investors to get rid of tax fever by taking the ELSS pill. The videos come at a time when many investors look at tax saving options.
The videos aim to nudge investors towards planning their tax savings early in the financial year. An early start gives investors enough time to evaluate all the tax saving options properly as well as the comfort to invest in a staggered manner. On the other hand, those delaying investments to the last minute struggle with arranging the corpus to pay at once.
ELSS is one of the better tax saving vehicles as it allows benefits in taxation and wealth creation. Under section 80C of Income Tax Act of 1961, investment in ELSS allows an investor to claim an exemption of up to Rs 1.5 lakh* from his total income in a financial year. Moreover, ELSS endeavours to give better risk-adjusted returns because it essentially follows multi cap strategy and invests at least 80% of its assets in equities.
Click here to watch the first video.
Click here to watch the second video.
Disclaimer
*As per the present tax laws, eligible investors (individual/HUF) are entitled to deduction from their gross income of the amount invested in Equity Linked Saving Scheme (ELSS) up to Rs.1.5 lakhs (along with other prescribed investments) under section 80C of the Income Tax Act, 1961. Tax savings of Rs. 46,800 mentioned above is calculated for the highest income tax slab. Investors are advised to consult his/her own Tax Consultant with respect to the specific amount of tax and other implications arising out of his/her participation in ELSS.
ELSS Investments are subject to a 3 year lock-in.
An investor education and awareness initiative by Axis Mutual Fund
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
