The maximum limit u/s 80C is currently fixed at Rs. 1.5 lakh and one must utilize it in every financial year by investing in various investment options that come under section 80C like PPF, ELSS, ULIPs, etc.
Since maximum salaried people working in the organized sector already contribute to debt investments like PF (Provident Fund) by their employer which itself is counted in 80C to save tax. Several portions of the 1.5 lakh limit are covered with Children’s school fees and home loans. Fixed Incomes investments like PPF, Bank FDs, etc cover the debt portion of your investments. To increase the investment exposure in equity one can invest in ELSS schemes to utilize the full limit I.e. Rs. 1.5 lacs of section 80C.
Benefits of Investing in ELSS:
This story is from the January 2021 edition of Investors India.
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This story is from the January 2021 edition of Investors India.
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