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What are ELSS funds and how will it help me in tax planning?

Equity-linked savings scheme, popularly known as ELSS, are open-ended, diversified equity schemes offered by asset management companies in India. They offer tax benefits under the new Section 80C of Income Tax Act 1961. ELSS can be invested using both SIP (Systematic Investment Plan) and lump sums investment options. There is a 3 years lock-in period.

You will get a tax deduction of up to ₹ 1.5 lacs, and the profits from ELSS schemes are subject to LTCG similar to equity .

Note : To get tax benefits from ELSS, you will need to provide the ELSS statement as proof of investment. Log in to coin, and under ‘ Dashboard ’, click on ‘ Portfolio ’.

You can select the respective financial year and generate the ELSS statement.

Note: If you're doing a SIP in the ELSS fund, then each instalment will be treated as a separate investment, and it will be locked for three years. You can only redeem the SIP or instalments for which 3 years are completed.