Data released by e-filing portal ClearTax.in shows that of the 1.86 lakh people who filed their income tax returns last year through its website, only 2% had invested in ELSS.
One of the main reasons why people do not invest in ELSS is the manual KYC process, says ClearTax.in. Many fund houses have recently introduced eKYC which makes the investment process a bit simpler. “With the advent of e-KYC and higher earnings in the younger age group we will see a rise in mutual fund investments, particularly in ELSS,” states the report.
Where do people invest in section 80C?
EPF and PPF were the preferred products to save tax. The report shows that 32% of tax savers had invested in EPF and 18% in PPF.
Besides, the report shows that there is a lack of awareness when it comes to claiming tax benefits through children’s school fee and health insurance which gives tax benefit under section 80D.
The data shows that investors are not saving on taxes as much as they should. Indians in the age group of 20-29 years have the potential to save taxes under Section 80C but they are not exhausting the Rs. 1.50 lakh limit in ELSS, shows the report.
Source: ClearTax.in
