Tax Saving Season Arrives

 

Beat Tax Fevers with SMART Investing

December is around the corner, the fever to save tax has started gripping people across the state. With the tax saving deadline approaching, individuals are looking for smart investment options not just to reduce their tax liability but also get inflation-beating returns.

Equity Linked Savings Schemes (ELSS) seem particularly attractive in the current environment. Though tax benefits under section 80C will eventually be phased out as per new income tax guidelines, investors can still claim deduction this year. 

Top ELSS Funds to Consider

Here are some top performing ELSS funds to consider based on latest available data:

Fund Name	1 yr %	3 Yr Ret (%)	5 Yr Ret (%)	10 Yr Ret (%)
Quantum ELSS Tax saver	16.24	19.11	12.90	13.85
Kotak Tax Saver	16.32	22.00	18.19	18.63
Canara Robeco Equity Tax Saver	13.69	20.37	18.61	17.26
DSP Tax Saver	18.34	22.97	18.73	18.84
Mirae Asset Tax Saver	15.20	20.55	18.85

With volatility expected in 2024, adopting a SIP approach can help average out costs. 

Start Early with SIP to Maximize Benefits

So don’t delay and start monthly ELSS-SIPs to maximize tax savings as well as potential returns. SIP is the most popular word now. We know that investing in SP is better in many ways than investing in a lump sum. In this volatile season, SIP in ELSS seems very appropriate.

Earlier is better: In the month of March, it is obvious that the investment in tax-saving schemes will increase. But many IT companies and other companies will get the tax saving details from the employees in December and January. They calculate the applicable TDS based on these inputs. So, there is no point in sleeping till the 11th hour.

Read More

To read more on SIPs and taxation of mutual funds, check out:

- My SIP handbook in Tamil (SIP Hand book in Tamil ) 

- Taxation of Mutual Funds chapter in my mutual funds book in Tamil ( link )

Do reach out to us for personalized advice on tax planning investments suitable for your specific needs.

Contact us to save tax!

Radha Consultancy : Contact us

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