||Equity Linked Savings Scheme (ELSS)
||National Pension Scheme (NPS)
|What is the lock-in period?
||ELSS has a lock-in period of 3 years.
||NPS has a lock-in period of up to retirement.
|What is the minimum annual investment?
||You can invest Rs.500 either as a lump sum or as an SIP investment.
||You can invest Rs.500 as an initial contribution in a year.
|What are the tax benefits?
||You can claim a tax deduction of up to Rs.1.5 Lakh PA under Section 80C of the Income Tax Act.
||You can claim a tax deduction of up to Rs.1.5 Lakh PA under Section 80C and an additional Rs.50K under Section 80CCD (1B) of the Income Tax Act.
|Where is the money invested?
||The entire amount is invested in equity in a diversified manner and is monitored regularly.
||A maximum of 50% is invested in equity. The rest is distributed in government bonds, treasury, etc.
|What about premature withdrawals?
||Funds invested in ELSS cannot be prematurely withdrawn.
||You can withdraw prematurely within certain limits and under the condition of purchasing an annuity.
|Are the returns taxable?
||LTCG over Rs.1 Lakh is taxable at 10%
||The maturity amount is partially taxable.