TAX SAVING FOR FREELANCERS, PROFESSIONALS, TRADER & WEB BASED AGENCIES

What is ELSS and its benefits

What is ELSS and its benefits
ELSS-Equity linked savings scheme.It is a type of diversified equity mutual fund scheme.Investing in ELSS mutual funds gives you double benefits of tax deduction and capital appreciation.Section 80C of the income tax act eligible for tax exemptions lock period is 3 years.

Why should you invest in ELSS?

When planned efficiently,investing in ELSS helps you to save your money.ELSS funds are tax free.No tax on interest,principal amount or maturity amount.
When it comes to withdrawals,it is also free since hold period is more than 1 year.It means no taxes on capital gains.
3 plans you can select as per your preference
  • Growth plan
  • Dividend plan
  • Dividend reinvestment plan

How to select a Fund?

In market there are plenty of funds,it will be good if you select according to your needs.Do not forget to compare mutual funds before buying.

Diversification

Diversifying in the same domain of securities is ideal.for a long period of time,it proves beneficial. If one sector is not performing well,still diversification would allow your funds best results.

Inflation

Money invested today is for future use.Over the time inflation spreads and starts flying high.In that time returns will be low.

Patience

Value of shares you invested will fall and rise.so,mentally prepared to face fluctuations.

Age

Youngers can invest plenty of time in stocks because they have lot of time.Their investment in stock funds fetch return over a long period.

Risk

While choosing funds,keep in mind how much risk has to be there.Do not loose comfort zone.If you are closer to retirement better to decrease the risk factor.

Conclusion:
As an investor,you have a plenty of funds to choose from.Apart from providing the flexibility to formula investment plans based on the individual goals,it is beneficial in the terms of professional management and diversification.

Tax saving for Freelancers, Professionals, Trader and Web based agencies

10 mins of consultation. Place a request.

Some of the featured articles from our knowledge center

Business2 13a51fd54d37dfeead10bd04c34a46671e69097acf6d8002d2665eb06b5cf58f
What is the income tax payable on partnership firm

As per section 4 of partnership act 1932, partnership means the relationship between the person who are agreed to share the profits of business car...

Business3 1835184f1312bba0b871fddd223a24dd62299180ed03a78d9e4098813c851963
What is business income on presumptive basis under section 44ad and 44ada

As per section 44AA income Tax act 1962, every person who is carrying on business or profession is required to maintain books of accounts. However,...

Business1 8b8cee9b60a38e9df92fb5b897e7c09195532b3d70b7ec28803a600cf2ce60cd
What is GST and different types of GST forms

The Prime Minister approved “The constitution amendment bill for Goods and Service Tax”(GST) in the Parliament Session (Rajya Sabha on 3 August 201...