Question

Describe the various tax benefuts available for mutual funda

Answer 1

Four, you can invest in tax saving mutual fund schemes (they are called Equity Linked Saving Schemes or ELSSs) and claim tax deductions of up to Rs 1.5 lakh under Section 80C. ... They invest mostly in stocks and have the potential to offer superior returns than other investment options available under Section 80C.

Answer 2

Investments in Equity Linked Saving Schemes or ELSSs qualify for tax deduction under Section 80C of the Income Tax Act. The maximum tax deduction allowed under Section 80C is Rs 1.5 lakh under Section 80C. ELSSs are equity mutual fund schemes that invest in stocks.