People are always looking for investment which not only offers good returns, but also provide some tax benefit also. Most common question asked by most of the people is- Which Section Offers Tax Rebate To Investors In Mutual Fund?
Most of the people make investment in stock market directly and get good returns on their investment. However, there is always an element of uncertainty and risk in stock market trading and investment. People who do not want to directly trade and invest in share market, due to its inherent risk factor, can invest in stock market instruments through Mutual Funds schemes. Mutual Funds are considered less risky as they are managed by highly qualified stock market experts.
Questions are often asked by people from Mutual Fund Experts and Investment Consultants with regard to the tax benefit available to mutual fund investment. The most common question is- Which Section offers tax rebate to investors in mutual fund? Other similar question being asked by investors are listed below. In this article we will provide answers to all the questions as per the provisions of Income Tax Act,1961.
- Which section of Income Tax Act offers tax rebate to investors of mutual funds?
Answer: Section 80C of the Income Tax Act,1961 provides tax deduction up to Rs.1,50,000 every year for investment in Equity Linked Saving Scheme (ELSS)
- Can I claim deduction for mutual fund investment?
Answer: Investment made in mutual fund through ELSS scheme is eligible for deduction under section 80C of the Income Tax Act up to a limit of Rs.1,50,000 in every financial year.
- Which mutual fund has tax benefit?
Answer: Equity Linked Saving Scheme(ELSS) Mutual Fund is eligible for tax deduction under section 80C of the Income Tax Act.
- Is mutual fund under 80C?
Answer: All mutual fund schemes are not covered under section 80C of the Income Tax Act. Only investment in mutual fund through ELSS are eligible for tax deduction under section 80C.
- Can I save tax by investing in mutual funds?
Answer : Yes. You can claim an amount of Rs.1,50,000 under section 80C of the Income Tax Act for investment made in mutual fund through ELSS
We can see from the above questions and answers that Mutual Fund Investment made through ELSS scheme are eligible for tax deduction up to Rs.150000 every financial year. This investment provides an opportunity to invest in share market indirectly and also provides tax benefit under the Income Tax Act.
Under Section 80C of the Income Tax Act,1961, there is a provision for tax deduction upto Rs.150000 every year for various types of savings and investments. ELSS also comes under section 80C and people who want high returns of mutual funds with tax benefit can invest in ELSS Mutual Fund scheme.
However, it may be noted that though the returns provided by ELSS are higher than the returns provided by Fixed Deposits, there is no guaranteed returns available to ELSS mutual fund investment.
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