I want to invest in ELSS, but confused whether to opt for divident or growth Plan(for same fund house). Whether fund manager have same stratgies for both type plan or different? If we assume that we invest divident in Bank FD(say at 10%) then in three year period,which option will give( or have given) better returns.
One may get tax relief on the investment under Section 80C.But after the 3 year Lock-in period when the units are offered for repurchase(redemption) Income Tax is deducted at source at 20% from the redemption proceeds and the investor receives only the net balance.So all that is achieved is that the Tax payable on the invested amount is deferred for 3 years.This does not happen in the case of the Tax Relief Under Section 80C for investments in PPF or LIC or Infrastructure bonds or NSC or Post Office recurring deposits.So What's the RELIEF that one gets in the case of ELSS????? It is only a tax Deferral.HENCE IT MAKES NO SENSE IN INVESTING IN ELSS fo 80C benefit.CORRECT me if I am Wrong.
RE:ELSS and I.T.deduction at source on redemption proceeds.
by Guest on Aug 17, 2008 03:26 PM Permalink
no tax is deducted u only pay stt all long are long term gains as it has a lock in period of 3 years.long tewrm mf gaing on which stt is paid is exempt from tax.please note
what is the lock-in period in case of SIP's in ELSS? Suppose if i pay SIP from apr 08 to mar 09 then is the lockin period of each installment different.
RE:SIP in ELSS
by Akshay Nagapurkar on May 14, 2008 03:41 PM Permalink
Hello Damir, lock in period for every SIP is of three years. that means if your SIP is starting from 1st may 2000 then it will lock for next three years and you can withdraw on or after 2nd may of 2003.For further queries and investment you can call me on 093250 40532
RE:SIP in ELSS
by Ayalur Ramsub on Aug 02, 2008 01:37 AM Permalink
Hullo Akshay At the time of withdrawal after 3 years one will not get the FULL Original investment back.TDS at 20% will be deducted.Is it therefore worthwhile taking 80C benefit by investing in ELSS Schemes.
RE:good information
by Akshay Nagapurkar on May 14, 2008 03:44 PM Permalink
Yes it will save your tax upto Rs. 100,000 and will give you the returns also on it. If you see the last performances it has delivered a returns of 30% and above.
