The tax advantage of ELSS
Investments in Equity Linked Savings Schemes, or ELSS, are eligible for a tax break under Section 80C of the Income Tax Act. What this means is that the amount you invest gets you a tax deduction. You can go up to Rs 1.50 lakh which is the limit under this section.
Since the minimum lock-in period of ELSS is three years, investors end up paying zero tax since long-term capital gains in equity is nil.
So there is no tax to be paid on the returns and at the time of investment, the investor gets a tax break under Section 80C.
