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Ask Money Today: Is it possible to create a retirement corpus of Rs 4 cr in 10 years?

Ask Money Today: Is it possible to create a retirement corpus of Rs 4 cr in 10 years?
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elss mutual fund: Invest more than Rs 1 5 lakh in ELSS mutual fund to claim full benefit under section 80C: Experts

Suggested InvestmentHorizon: >3 years Time taken to doublemoney: 1.1 Years Chartered Accountant Naveen Wadhwa, DGM, Taxmann.com says, Section 80C allows deduction in respect of various investments such as a subscription to units of ELSS, ULIPs, etc. The Indian Stamp Act provides for the levy of stamp duty at the rate of 0.005% on purchase of units. If an investor is investing Rs 50,000 then stamp duty of Rs 2.5 shall be levied, and a balance amount of Rs 49,997.5 will be invested in the units. The provision is silent whether the amount of deduction under Section 80C shall be arrived at before excluding or after excluding the stamp duty. It is advisable to claim the deduction for the net amount, that is, after excluding the stamp duty.

Invest more than Rs 1 5 lakh in ELSS mutual fund to claim full benefit under section 80C: Experts

Synopsis According to chartered accountants, this is necessary to claim the full tax-saving benefit of Rs 1.5 lakh, which is the maximum allowed under section 80C. iStock Effective from July 1, 2020, investments in equity mutual funds attract stamp duty at the rate of 0.005%. If you are investing in an equity-linked savings scheme (ELSS) to claim the tax benefit under section 80C of the Income-tax Act, 1961, then do make sure that you have invested marginally more than the specified limit of Rs 1.5 lakh in a financial year. According to chartered accountants, this is necessary to claim the full tax-saving benefit of Rs 1.5 lakh, which is the maximum allowed under section 80C. However, in order to do this you may have to end up investing at least Rs 500 more than Rs 1.5 lakh i.e. Rs 1,50,500 in case of a lump sum investment. In case of SIPs, the amount may have to be more.

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