ELSS Equity Linked Savings Schemes: ELSS was introduced in the year of 1990 under Section 88 CCB of Income Tax Act. SUch a scheme has a duration of 10 years and the profits made from the scheme are treated as long term capital gains. Under this the investor receives  the original invested amount of Rs 10,000 in the year he/she receives.
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This tax saving scheme has the shortest lock period of 3 years when compared with other similar tax saving schemes. Investment can be made with a single one time payment or a series of planned payments. ELSS is a basically a particular type of mutual fund that gives you tax benefits. Being appropriate for investors who have a high risk profile, ELSS returns tend to fluctuate which depends on equity market that has no fixed returns. ELSS schemes are flexible and open ended which makes it easier for users to subscribe to it any day.

Edited and Updated 15th February 2014

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