Equity Linked Saving Schemes-Snapshot

Abstract

ELSS holds the advantage of being the only equity-based tax saving instrument available in the country today and offers tax deduction on investments up to Rs 1,00,000, under Section BOC of the Income-Tax Act. Experts are of the opinion that equities, proven time and again to be the best asset class in the long term, would continue to beat inflation over the next few years, considering the strong growth rate in the economy and a healthy rise in corporate earnings. It would be prudent for long-term investors to invest in an asset that will do just that. We have elucidated the nature of an ELSS, which rightly deserves its due.