It is the time of the year, when individuals are making their hard earned money work harder for them. In short, it is the tax planning season, wherein investors are looking for dual benefits of tax saving instruments to avail tax benefits, coupled with aim to earn good returns.
Birla Sun Life Tax Relief 96, is something that will meet this, as it help creating wealth through investment in equities, which has time and again proved to beat other asset classes in the long run, in terms of returns. It offers both the growth and the dividend option and was open to subscription in 1996. Hence, a long-standing track record*.
A quick snapshot of benefits under Birla Sun Life Tax Relief '96:
• Aims to generate long term capital growth, through investment in equities.
• Investments in equity and equity related securities, with tax benefit under section 80C, subject to eligibility. Under Sec 80C, the amount invested up to Rs 1.5 lakh qualifies for a tax rebate.
Birla Sun Life Tax Relief 96- Not So Taxing
Birla Sun Life Tax Relief has a proven track record* of generating returns. The product is an An Equity Linked Savings Scheme (ELSS), which is an open-ended Equity Mutual Fund which qualifies the investor for tax exemptions under section (u/s) 80C of the Indian Income Tax Act. ELSS doesn't just help to save tax, but also gives an opportunity to grow the money. What you get is tax benefits up to a limit of Rs 1.5 lakhs on investing in the scheme.
Highlights of Birla Sun Life Tax Relief 96
• Tax benefit under Sec 80C
Birla Sun Life Tax Relief '96 gets tax benefits under Sec 80C because it is a ELSS scheme and they qualify for tax benefits of upto Rs 1.5 lakhs. This tax benefit was given to encourage savings into equity and equity related instruments through the mutual fund route.
• Lock in period of 3 years (lowest in tax saving category)
Compared to traditional tax saving instruments** like Public Provident Fund (PPF), National Savings Certificate (NSC) and bank fixed deposits; the lock-in period of an ELSS scheme is much lower. Birla Sun Life Tax Relief have the only three-year lock-in period. This would help you to grow your money that considers market fluctuations.
• Available in SIP and lump sum investment options
Using SIP one can invest small amount periodically (weekly, monthly, quarterly) into a selected mutual fund. If an investor is willing to invest the entire amount available with him in a mutual fund, it can be called as a lump sum mutual fund investment.
The article is not a solicitation to buy, sell in securities or other financial instruments. Birla Sun Life Tax Relief'96 its subsidiaries, associates, and the author does not accept culpability for losses and/or damages arising based on information in this article. Investments in the instrument mentioned above are risky and investors are advised to seek professional advise before investing.