Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: VAT RATES :: VAT Audit :: TDS :: ACCOUNTING STANDARDS :: cpt :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: form 3cd :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment
 
 
News Headlines »
  Best ways to save tax in 2017
 8 unknown stocks that could yield huge returns
 Government may set threshold for probe into deposits to prevent harassment of taxpayers
 How to calculate capital gains tax
 April 1 still the target for GST: FM
 How to respond to CBDT’s tax compliance notice
 Goods & Services Tax (GST)(As On 01-01-2017)
 Excise, service taxpayers to migrate to GST portal by January 31
 Tax numbers belie slowdown: FM
 Income tax (1st Amendment) Rules, 2017
 Anti-avoidance tax rule to kick in from April 2017

Mutual funds pitch for ELSS as tax deadline nears
January, 17th 2015

Mutual funds are going all out to sell their equity-oriented tax savers to investors as the deadline for employees to submit investment proof to companies to avail the tax benefit nears. Fund houses are doling out as much as 6% to distributors to push equity linked savings schemes (ELSS) to clients, sensing that the enhanced investment limit for saving taxes and strong performance of equity schemes would draw more investors to this product.

Investments in ELSS, a close-ended equity scheme with a three-year lock-in, allow investors to avail tax exemption up to Rs 1.5 lakh. Till last year, this limit was Rs 1 lakh. In the past three years, investors preferred traditional investment avenues such as PPF or tax-saving bank deposits due to poor returns from equities till early February.

But, with the market prospects seeing a turnaround last year, distributors said investor interest in ELSS has shot up.
Mutual funds pitch for ELSS as tax deadline nears "With the outlook for equities improving due to a new government at the Centre and expectations of a better macroeconomic environment, many investors are keen to invest in ELSS under Section 80C," says Harshvardhan Roongta, chief financial planner, Roongta Securities.

In the past one year, average returns from the ELSS category were close to 54% against 29% gains in the Sensex. The return from PPF is fixed at 8.7% per annum. As part of their campaign to popularise ELSS, MF houses are running awareness campaigns and special contests.

Distributors are pushing the product on the grounds that its lock-in is shorter than that for PPF, bank deposits and post office's NSC. Dividend income from ELSS is tax-free.

"For first-time equity investors, ELSS ensures discipline as they are forced to take a long-term view due to the three-year lock-in which comes with this product," says Vidya Bala, head (Research), fundsindia.com Amongst ELSS, Bala recommends Axis Long Term Equity Fund and Franklin India Taxshield. She believes rates are at the bottom of the cycle and it is a matter of time before interest rates on conventional debt products such as PPF and tax-saving fixed deposits are lowered.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Reengineering Software Re-engineering Software Reverse Engineering Software Reverse Development Software Change Modulation Software Conversion Software Re-creation Software Re-development

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions