Question

Elss and ulips fall into the same tax saving category?

Answer 1

Explanation:

ULIPs have a lock-in period of 5 years. ELSS is liquid after completion of 3 years. You effectively get the same benefit in a span of 3 years. Over a 15 year period, you can recycle your ULIP investment only for three tax benefits.

Answer 2

Explanation:

It is believed that high tax rate encourages tax evasion. On the other hand, moderate tax rates encourages people to voluntarily disclose their true income and thereby, encourages open savings and investment