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Which mutual funds are eligible for 80C?

Which mutual funds are eligible for 80C?

The Tax deduction under this scheme is available for Provident Fund (PF) & Voluntary Provident Fund, Public Provident Fund (PPF), Life Insurance Premiums, Equity Linked Saving Scheme (ELSS) of Mutual Funds.

Does SIP come under 80C?

You can initiate an SIP into an ELSS, the most popular tax-saving investment under Section 80C of the Income Tax Act, 1961. Every SIP instalment into an SIP counts towards tax deductions under Section 80C. You can claim a tax rebate of up to Rs 1,50,000 and save up to Rs 46,800 a year in taxes.

Can I invest more than 1.5 lakh in 80C?

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.

Which mutual funds are exempt from income tax?

Long term capital gains upto Rs 1 Lakh is totally tax free. Dividends paid by equity mutual funds are tax free in the hands of the investor but the AMC pays dividend distribution tax (DDT) at the rate of 11.648%.

How do I know if my mutual fund comes under 80C?

These are tax-saving mutual funds that invest at least 65% of their assets in the stock markets. Investments of up to Rs 1.5 lakh in ELSS funds can earn a tax break under Section 80C. The advantage of ELSS funds is that they come with the lowest lock-in among all tax-saving investments – just 3 years.

How do I know if my mutual fund is tax saver?

An ELSS is a mutual fund class that offers tax deductions under Section 80C of the Income Tax Act, 1961. To check if a fund is an ELSS or not, you need to check for its details on the fund house’s website.

Can I save tax more than 1.5 lakh?

The most popular tax-saving options available to individuals and HUFs in India are under Section 80C of the Income Tax Act, Section 80C includes various investments and expenses you can claim deductions on – up to the limit of Rs. 1.5 lakh in a financial year.

Which deduction comes under 80C?


  • S.No. Deduction from. Type. Amount.
  • Select. Life insurance premium paid. Deposit in provident fund/superannuation fund. Investment in fixed deposit/Bonds. Investment in NSC. Tuition fee of two children. Repayment of housing loan (principal component)
  • Total.

What is the max limit of 80C?

Rs 1.5 lakh
Section 80C is one of the most popular and favourite sections amongst the taxpayers as it allows to reduce taxable income by making tax saving investments or incurring eligible expenses. It allows a maximum deduction of Rs 1.5 lakh every year from the taxpayers total income..

Is all mutual funds are tax free?

You make long-term capital gains on selling your equity fund units after a holding period of one year or more. These capital gains of up to Rs 1 lakh a year are tax-exempt. Any long-term capital gains exceeding this limit attracts LTCG tax at the rate of 10%, and there is no benefit of indexation provided.

How can I get 80C certificate for mutual fund?

This facility is jointly offered by all the Registrar and Transfer Agents (RTAs) for mutual funds. You simply need to enter your email ID and PAN number. Simply click here to access this facility. Tax-saver fixed deposit: Investing in a 5 year tax-saving fixed deposit will get you a tax deduction under Section 80C.

Does VPF comes under 80C?

Voluntary Provident Fund or VPF as it is called, is also eligible for tax deductions under Section 80C of the Income Tax Act. Public Provident Fund: Public Provident Fund is a popular investment instrument as it offers assured returns. Interest is compounded on an annual basis and the maturity period of the scheme is 15 years.

What is a term deposit under 80C?

Fixed deposit schemes falling under the ambit of the much-popular Section 80C of the Income Tax Act, 1961 are commonly known as tax saving fixed deposits. These accounts are offered by most of the major banks and financial companies.

What falls under Section 80C?

Tax Deductions which falls Under Section 80C of Income Tax Act. An individual and HUFs can claim deductions under Section 80C on payments made to the following: The premium for Life Insurance for self, spouse, or children. Deferred Annuities are payable by self and the Government. Contribution towards PPF.

Only investments in Equity Linked Savings Schemes (ELSSs) or tax saving mutual fund schemes qualify for a tax deduction under Section 80C of the Income Tax Act. Unfortunately, none of your Systematic Investment Plans (SIPs) are in ELSSs. Therefore, you cannot claim any tax deduction on your investments under Section 80C.