Disclaimer: The ideas and thoughts expressed in this article are not any kind of investment advice intended to influence anybody to take investment decisions. Please note that the numbers shown in the article are not accurate and not applicable for all income groups and would vary as per the changes in income tax rules from time to time. Please consult your advisor before taking any investment decision.
E.L.S.S.
E.L.S.S. (Equity Linked Saving Scheme) are tax saving Mutual funds. E.L.S.S investments are eligible for deduction in taxable income of up to ₹1,50,000 under section 80C. E.L.S.S. have the shortest lock-in period (3 years) and offers the possibility to earn higher returns compared to other tax-saving instruments.
Disclaimer: Mutual fund investments are subject to market risks. read all scheme related documents before investing.
N.P.S.
N.P.S. (National Pension System / Scheme) is a retirement saving scheme by the Govt. of India that offers a deduction of taxable income of ₹1,50,000 under section 80CCD(1A) and an additional taxable income deduction of ₹50,000 under section 80CCD(1B). NPS can be used to accumulate a sizable corpus till retirement.
Consider investing in a combination of E.L.S.S. and N.P. S.
So, an investment of ₹2 Lakhs with the combination of ₹1,50,000 in E.L.S.S. (80C) and ₹50,000 in NPS (80CCD(1B)) reduces the taxable income by ₹2 Lakhs and helps to save income tax up to ₹62,400.
This ₹62,400 saved will be a surplus investable amount created out of investment in a tax-saving combination of ELSS and NPS and will be available for additional investment for achieving money goals.
If this tax-saving combination investment is continued every year, then there is a possibility of an additional yearly investment of ₹62400 (assuming current IT tax rates) which can create a substantial corpus in the long term or create a guaranteed source of income for lifetime if invested judiciously.
To know more about NPS and E.L.S.S. or to invest in NPS and E.L.S.S. before the end of this financial year, Connect with us https://www.assetplus.in/mfd/investonline
