The government has specified certain limits for the income above which one can fall in a particular tax bracket. However, there are a few options approved by the same in investing in which can help one save income tax to a good extent. Keeping the income in mind, one needs to check all these options which can help him save a good amount. There are various options offered by the government among which one is the ELSS. It is the mutual fund where one can invest for three years and earn a good return as well as save tax on his income also. Hence it can prove as a viable option for a middle-class person. Among the best tools that are used for the income tax purpose, the ELSS can be the one that can offer maximum return on one’s investment.
Mutual funds are basically an investment tool. In normal mutual funds, one can invest any amount and earn a good rate of return. Mutual funds are directly linked to the equity market as the amount collected by the AMC is invested in shares of different companies in the market. To monitor the investment and switch the same timely, there is an expert called fund manager who keeps an eye on the investment of the company and also the share market. In best tax saver mutual fund one can also get the benefit of saving tax. One can invest the amount in the ELSS till 150000 and save the income tax on this amount from his net taxable amount.
Invest in ELSS:
Investing in ELSS can prove as a right option to the investor who falls in the tax bracket but wants to invest in the ELSS and get the amount to be paid as income tax saved. Various companies in this market have got the best tax saver mutual fund in its portfolio which can prove helpful to any individual who wants to save tax. The investor cannot withdraw the amount invested by him in this fund for the period of three years. There is also a ceiling of investing in this fund which is kept as 150000 per annum. The amount till 150000 can be exempted from the tax but that needs to be invested in advance, and one needs to have a valid proof for the same.
How to invest?
The procedure to invest in a mutual fund is simple. One can go for the investment in it with the help of an offline or online option. In an offline option, one needs to go for the agent who deals in this industry and submit him with all the necessary documents. In the online option, one can go to the site of the particular company and fill the form by entering necessary details which can help him create his account. With the help of mF here one can invest in the market on a single stroke or can check the same with the help of the instalments also. Hence investing in the Mutual fund can be much interesting.