Tax saving schemes are mutual fund schemes that qualify for tax deductions under Section 80C of the Income Tax Act. These schemes are also known as Equity Linked Saving Scheme (ELSS) or tax planning or saving mutual funds. Investors can park money in these schemes and claim tax deductions of up to Rs 1.5 lakh under Section 80C.
A minimum of 80% of the total investible corpus is invested in equity and equity-related instruments
The fund invests in equity in a diversified manner – across different market capitalizations, themes, and sectors.
There is no maximum tenure of investment. However, there is a lock-in period of three years.
Tax exemption on the invested amount under Section 80C of the Income Tax Act.
Income is treated as LTCG and taxed according to the prevalent tax rules.