News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
News Headlines »
 5 things you should know about section 80DDB deductions ITR filing
 All About e-Filing Income Tax Return in India ITR Filing
 Good News! Income tax return filing process simplified; Big relief in LTCG from CBDT
 How to report pension income while filing ITR
 How you can file income tax return online DIY guide to ITR filing
 How to file ITR-1 online
 How to file ITR-1 online
 New income tax rules with revised guidelines comes in effect from today
 7 things to keep in mind while filing Income Tax Returns ITR filing
 DIY guide to file your ITR
 Income Tax return online filing: Ensure your Form 16 is valid and here is how you can check for it

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 2019 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