ELSS (Equity Linked Savings Scheme): Features, Documents & Limit

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Hiral Vakil

ELSS
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PPF
Section 80C

ELSS stands for Equity Linked Savings Scheme. It is equity-based tax savings mutual funds that qualify for income tax deductions u/s 80C. Investments made up to Rs 1.5 lacs under ELSS qualify for tax benefits. It has a lock-in period of 3 years. 

Any individual who is KYC verified can invest in ELSS. In the case of minors, the guardian has to be KYC verified while investing in the name of the minor. The minor, upon attaining majority should immediately complete the KYC verification process.

Want to know what 80C covers?
Read our article here to see all the deductions you can claim under this section and reduce your tax liability.
Read More
Want to know what 80C covers?
Read our article here to see all the deductions you can claim under this section and reduce your tax liability.
Read More

Features of ELSS (Equity Linked Savings Scheme): 

List of documents required to invest in ELSS funds

The investor needs to be KYC verified to start investing in funds. If you are KYC verified, you can start investing right away. No further documents are required. If you are not KYC verified, you will have to complete the verification process before you can start investing. The documents required for KYC verification are:

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FAQs

Is there any limit for investment in ELSS? 

There is no upper limit for investment into Equity Linked Savings Scheme. However, only Rs. 1,50,000 will be qualified as a deduction under section 80C. The minimum amount you can invest in ELSS is Rs. 500.

Is return on ELSS taxable? 

No. Both principal amount of investment and return on maturity are exempt from tax.

Is there any tax on capital gains from ELSS?

The Long-Term Capital Gains on ELSS are tax-exempt up to Rs 1 lakh, and dividend received is tax-free in the hands of investors.

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