24 Jan 2014

ELSS : Sec 80 C Tax Saving scheme


 
 
   Equity Linked Savings Scheme (ELSS) is a type of diversified equity mutual fund,with tax exemption under section 80C of the Income Tax Act.It offers the benefits of capital appreciation and tax saving. ELSS has a lock-in period of 3 years.
      ELSS investor receives the potential upside in Indian equity markets. No tax  will be deducted on the long-term capital gains from ELSS. Lock-in period in ELSS is shortest than other tax saving options.

TAX SAVING- COMPARISON
Parameter
PPF
NSC
ELSS
Lock in Period
15 years
6 years
3 years
Returns
(Compounded Annually)
8.80 % ^
(Compounded
half-yearly)
8.60 to 8.90 % ^
Not assured. dividends/ returns
Minimum investments
Rs.500
Rs.100
Rs.500
Maximum investments
Rs.100,000
No limit*
No limit*
Amount eligible for
deduction under Section 80C
Rs.100,000
Rs 1,00,000
Rs 1,00,000
Taxation for interest
 Tax free
 Taxable
Both Dividends and capital gain are tax free
 Safety/ Rating
 Highest
 Highest
 High Risk

  
   Investments of upto Rs.One lac per year is allowed to be claimed as income tax deduction.But,the main advantage of ELSS over other options are it’s short lock in period. Maturity period of National Savings Certificate is 6 years and Public Provident Fund is 15 years.

  Earning potential of ELSS is high as the equities perform well over a period of time.Investor can receive yield  during the lock-in period from the dividend option.Another advantage is by opting of Systematic Investment Plan in ELSS.It is suitable for all types of investors who are not risk averse and need tax planning. 
 
Disclaimer:  Investment in ELSS carry market risk and any investment decision needs to be taken only after reading the offer document.

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17 Jan 2014

5 International Personal Finance Blogs


       World wide web offer large number of free and paid information at your fingertips.Selecting the valuable material is very important to save time.I think,the below popular blogs in the world  will give few good insights for your life.

1.Consumerist

  This is a blog by Consumer media LLC.It give helpful tips for consumers.

2.The Simple Dollar

 Trent Hamm's popular blogging site about Credit cards,Insurance and other Financial matters.

3.Money Saving Mom

  Money Saving Mom is a blog by Crystal Paine.She writes about house hold savings and family budget.

4.Money Talk News

  Stacy Johnson's Blog about financial news and deals.

5.Money Crashers

  This blog is an initiative of Andrew and Park.Articles cover topics from money management to Economic policy.