Invest in ELSS – Tax Saving Mutual Funds & Save Upto ₹46,800 In Taxes

  • Save up to Rs 46,800 in taxes
  • Highest returns among other 80C options
  • Lowest lock-in of 3 years
  • Recommend investing in monthly SIPs

Why ELSS is the Best Tax Saving Option

Equity Linked Saving Scheme or ELSS is a tax saving mutual fund where you can save upto Rs. 46,800 in a financial year under Section 80C.
Lowest Lock-in of 3 Years
2x higher interest rates than FD/PPF
Option to invest Monthly (SIP)
Invest as low as ₹500

Comparison between ELSS and other tax-saving methods

There are a plethora of savings schemes to help you build your wealth, such as FD, PPF and NSC to name a few. But the returns from these schemes are taxed. This is where ELSS stands out with its dual-benefit – its returns are generally higher & partially taxable (Returns are not taxable until 31 March 2018. After 31 March 2018, returns will be taxable at a concessional rate of 10% if gains are greater than Rs. 1 lakh. This coupled with a mere lock-in period of 3 years is all the more reason for you to invest in ELSS now.
Investment Returns Lock-in Period Tax on Returns
5-Year Bank Fixed Deposit 6% to 7% 5 years Yes
Public Provident Fund (PPF) 7% to 8% 15 years No
National Savings Certificate 7% to 8% 5 years Yes
National Pension System (NPS) 8% to 10% Till Retirement Partially Taxable
ELSS Funds 15% to 18% 3 years Partially Taxable
Section-80 of the Indian Tax Act allows deduction upto Rs. 150,000 from your total annual income. This limit was enhanced in the 14-15 fiscal. Yet, many taxpayers find a major chunk of this getting consumed by mandatory deductions.
1.5 Lakh Investment in ELSS will double in 5 years
Lowest lock-in period of 3 years

Why Invest in ELSS with ClearTax

With ELSS mutual funds get the dual benefit of saving on taxes and higher interest rates compared to bank FD, PF, NSC and other tax saving investment options.
Easy to Invest
Invest in Hand-picked best performing Mutual funds
Easy to track
Track / monitor your investments 24/7
Easy to withdraw
Withdraw anytime in 1-click with no paperwork needed
Paperless
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Bank graded security
Data security is our priority and all you investments are completely secure
Investment proof for HR
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Invest in Best ELSS Tax Saving Mutual Funds

Invest only in the expert handpicked best tax saving mutual funds in India.
FUND 3Yr. Returns 5Yr. Returns  
Reliance Tax Saver Fund
9.91% 24.71%
DSP BlackRock Tax Saver Fund
14.95% 23.69%
Axis Long Term Equity Fund
14.62% 27.48%
Aditya Birla SL Tax Relief ’96
16.13% 25.99%
SBI Magnum Taxgain Scheme
9.47% 20.01%
ICICI Prudential Long Term Equity Fund
12.80% 21.93%
Mutual Funds Rating 5Year AUM Category
Aditya Birla Sun Life Tax Relief 96 4 23.7% 5,032 Cr Equity
DSP BlackRock Tax Saver Fund 4 23.7% 3,905 Cr Equity
Axis Long Term Equity Fund 4 21.8% 16,161 Cr Equity
ICICI Prudential Long Term Equity Fund(Tax Saving) 4 18.5% 5,034 Cr Equity

Recommended reading

What is a Systematic Investment Plan (SIP)?
A Systematic Investment Plan allows you to invest regularly a fixed sum in your favorite mutual fund scheme.
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Mutual Fund Taxation – How mutual funds are taxed?
The basic motivation behind investing in mutual funds is to earn interest/dividends…
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Best Tax Saving Investment option under Sec 80C
Investment in ELSS Funds or Tax Saving Mutual Funds is considerd as the bese …
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ELSS vs FD – Comparison of ELSS Funds with Fixed Deposits
Under Section 80C of the Indian Income Tax Act, you can claim tax benefits…
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FAQs (Frequently asked Questions)

As a tax-paying citizen, the Section-80 of the Indian Tax Act allows you some breather – a deduction of up to 150,000 from your total annual income.
  • What are ELSS funds?
    ELSS funds are tax saving mutual funds, in which majority of the funds are invested in equity schemes.
  • What is the lock-in period?
    ELSS has a lock-in period of 3 years.
  • What is the maximum tax benefit that can be availed by investing in ELSS every year?
    Under section 80C, one can avail tax benefit upto Rs 45,000 by investing upto Rs 1.5 lakhs per year in tax-saving schemes such as ELSS. You can also invest more than Rs 1.5 lakhs in ELSS.
  • Why to invest in ELSS?
    ELSS has benefits over other conventional tax saving instruments like FDs, NPS, etc. It has the lowest lock in period and the returns are higher than the other tax-saving schemes.
  • Who should invest in ELSS?
    Anyone who wishes to reduce income tax by investing in 80C tax-saving schemes. ELSS is an equity investment. Hence, it is more suitable for people who are open to risk and stay invested for a long time to reap the benefits.
  • Is there any tax associated with ELSS?
    As the lock in period of ELSS funds are 3 years, the gains are treated as long-term gains and they are taxed at 10% for gains over 1 lakh rupees.
  • What are equity funds?
    Equity funds are schemes which concentrate their investments in shares of companies of different market capitalization
  • Should I choose SIP or lump sum?
    An SIP allows you to invest a fixed sum regularly in mutual fund(s) of your choice. A lump sum is when you invest on-time in bulk in mutual fund(s). SIP comes with few advantages:
    • It allows you to invest small amount every month without the stress of paying in bulk
    • Investing all through the year averages the cost of investing – you don’t end up paying too much per unit
    • Gives you financial discipline
  • How to invest in an SIP on ClearTax?
    The process is very simple on ClearTax.
    Step 1: Select the fund(s) and the amount you want to invest every month
    Step 2: Provide your details and make payment for the first month
    Step 3: Activate SIP payments for the rest of the months via one of the 3 methods we offer
  • Why invest through ClearTax?
    ClearTax is super easy and simple to use. We do the homework for you and offer the best-performing mutual funds chosen by experts. It takes less than 5 minutes to invest on ClearTax.
  • How to invest in Mutual funds at ClearTax?
    The process is very simple on ClearTax.
    Step 1: Select the fund(s) and the amount you want to invest every month
    Step 2: Provide your details
    Step 3: Make payment and you are done
  • Is KYC necessary for ClearTax?
    KYC is necessary for all fund houses. If you are investing through ClearTax, you need to do your KYC just once. The same KYC will be used for all further investments.
  • How to do KYC on ClearTax?
    KYC verification through ClearTax is a very simple process. You can verify by:
    Using OTP sent to your Aadhaar-registered mobile number OR
    By uploading photos/scans of the required documents