5 popular deductions you can claim under Section 80C in 2023–24
5 popular deductions you can claim under Section 80C in 2023–24
Among all the different sections that provide deductions under the old tax regime, 80C is the most popular. Various expenses and investments qualify for deduction of up to ₹1.5 lakh u/s 80C and thus one can choose from various options according to one’s needs. We look at five of the popular deductions you can claim u/s 80C in 2023–24.
Equity Linked Savings Scheme
ELSS, short for Equity-Linked Saving Scheme, is a type of mutual fund that invests primarily in equity and equity-related instruments in India. It offers tax benefits under Section 80C of the Income Tax Act and comes with a lock-in period of three years.
With the potential to offer high returns, ELSS is considered a tax-saving investment option for those who are willing to take on some risk in their portfolio. “If someone is looking for short term investment then he/she may go for ELSS funds as it has only 3 years of lock-in period(least among all),” says Atul Sharma, Founder, Lex N Tax, a tax consultancy. ELSS is one of the products in the 80C deduction bucket that offers an exposure to equities.
Website link: https://lexntax.com/
