Why Equity Linked Saving Scheme(ELSS)?

We live in a consumer driven era, where we are spoilt for choices today and are always looking to cut the best deal when we are out to shop. Don’t you find yourself always looking for those ‘one plus one free’ offers while you shop? But, could you imagine this concept applying to your tax planning as well? That’s where Equity Linked Savings Schemes (ELSS) comes in. ELSS aims to give you a dual benefit of tax savings along with wealth building.

ELSS is a special category of mutual funds that invests predominantly in equity and equity related instruments. Investments in ELSS come with a 3-year lock in period.

When you invest in ELSS (up to INR 1,50,000 a year), you get a deduction from your taxable income u/s 80C of Income Tax Act, 1961. This can potentially give you a direct income tax benefit of INR 53,820* a year.

Calculate how much tax you can save by
investing in ELSS

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We are showing tax values for annual income between ₹. 2,00,000 - ₹. 50,00,000 Please enter maximum salary of ₹. 50,00,000. Showing tax values for salary of ₹. 50,00,000
  • Your tax amount

How much can you invest annually in an ELSS?

We are showing tax values for annual investment between ₹. 1 - ₹. 1,50,000 Maximum investment allowed ₹. 1,50,000. Showing tax values for investment of ₹. 1,50,000
  • Your tax reduced to

  • ₹ 39,520.00

You save tax amount of

₹ 7,280

Invest instantly

Why Aditya Birla Sun Life Tax Relief 96 Fund?

The Aditya Birla Sun Life Tax Relief ’96 Fund can be the choice here for funding your medium to long term goals through wealth building while saving tax along the way.

It invests a majority (more than 80%) of its corpus in diversified equity and equity related instruments. Return from investments in equity tends to outperform other investment modes over the long term. This scheme managed by its expert fund managers offer market linked returns thus giving you an opportunity for capital growth and wealth.
To know more about our product Click here

Riskometer

(An Open Ended Equity Linked Savings Scheme with a statutory lock in of 3 years and tax benefit.)

Investors understand that their principal will be at Moderate High risk

Calculate your Value of investment after 3 years

Where ELSS stands over other tax saving investment options

Investment Option Equity Linked Saving Schemes (ELSS) Public Provident Fund (PPF) Issue of National Savings Certification (NSC VIII) Bank Fixed deposit/Post Office Fixed deposit
Value of investment
(After 3 Years)
Lock in period (in years) 3 Years 15 Years 5 Years 5 Years
Return potential 12.14% p.a. 1 7.9% p.a. 2 7.9% p.a. 2 7% to 8% p.a. 3
Possibility for Dividends Yes, with dividend option No No No
Tax on returns Long term capital gains above INR 100,000 taxed @ 10%4 Tax free after 15 years Taxable at applicable tax slab rate Taxable at applicable tax slab rate
Investment strategy Active, market linked returns Passive, pre-determined returns Passive, pre-determined returns Passive, pre-determined returns

1 ELSS Category Average, as on 22nd January,, 2020, source: Morningstar Direct.

2 PPF and NSC, source: India Post.

3Bank Fixed Deposit, source: Average FD rates of PSU Banks

4Applicable surcharge & cess extra

Note: Unlike PPF, NSC & FDs investments in Mutual Funds are subject to market risks.

Key Benefits

Tax advantage

Annual tax saving up to INR 53,820* u/s 80C Income Tax Act, 1961

Investment discipline

The lock-in feature discourages you from making early redemptions & inculcates discipline in your investing

Market linked returns

You can benefit from long term capital growth potential of equity category through market linked returns

Expertise

You get access to the years of expertise of fund managers in stock selection and portfolio management

Product Details

No Exit Load

No extra charges/fees to be paid on redeeming investment after 3 years

Taxation

Long-Term Capital Gains (LTCG) tax is applicable on ELSS funds as the lock-in period is 3 years. Gains are taxed at 10% for gains over 1 lakh rupees.

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