Are SIP eligible for 80C deduction?

Are SIP eligible for 80C deduction?

Every SIP instalment into an SIP counts towards tax deductions under Section 80C. You can claim a tax rebate of up to Rs 1,50,000 and save up to Rs 46,800 a year in taxes.

Is there tax exemption on SIP?

SIPs can be one of the best tax saving instrument with high returns on your investments. You can claim a deduction of up to Rs. 1.5 lakh from your taxable income for investing in ELSS through SIPs under Section 80(C) of The Income Tax Act, 1961. With highest tax slab of 30%, you can save up to Rs.

Is SIP income taxable?

Is SIP Tax-free? If an investor is investing through SIPs in equity funds or balanced mutual fund schemes, then all the gains made after one year will be considered as long-term capital gains that will be completely tax-free.

Do I have to declare SIP on tax return?

If the long-term capital gains are less than Rs 1 lakh, then you don’t have to pay any tax. However, you make short-term capital gains on the units purchased through the SIPs from the second month onwards. These gains are taxed at a flat rate of 15% irrespective of your income tax slab.

Is mutual fund under 80C?

How to declare mutual funds in 80c? 80C allows deduction for ELSS mutual funds only upto Rs 1.5 lakh. Hence any investment made in ELSS mutual funds can be claimed as deduction under 80C.

Is my mutual fund under 80C?

How ELSS saves tax? ELSS mutual funds are the only class of mutual funds that are covered under Section 80C of the Income Tax Act, 1961. By investing in an ELSS, you are entitled to claim a tax rebate of up to Rs 1,50,000 a year. This helps you save up to Rs 46,800 a year in taxes.

Can we do SIP for 40 years?

There is no limit to how much you can invest in a systematic investment plan or SIP.

Is SIP better than PPF?

Tax benefits can be availed both in PPF as well as ELSS category of mutual funds under section 80C. However, historical data suggests that a 15-year mutual fund SIP in an average fund can give you 1.5 times returns than PPF which makes it very attractive in terms of returns and liquidity.