The financial year-end scramble for tax saving is real! Many wonder if they need to invest the full ₹1.5 Lakh in ELSS. Let's find out the smarter way to save tax under 80C.
The ₹1.5 Lakh tax limit is for ALL 80C deductions (EPF, insurance, home loan principal, etc.). ELSS fills the *remaining* gap. Calculate existing contributions first to avoid over-investing!
Don't dump ₹1.5L at once! A monthly SIP helps average costs, reduces market timing risk, and ensures disciplined investing. Spread out your tax-saving contributions throughout the year.
ELSS is an equity fund. Don't invest solely for tax. Ensure it aligns with your risk profile & long-term goals. Consider diversification within your 80C options (e.g., PPF for debt exposure).
Steer clear of last-minute lump sums, chasing past returns, ignoring the 3-year lock-in, or neglecting fund holdings. Invest thoughtfully, considering suitability and liquidity needs, not impulsively.
Start ELSS SIPs early in the FY. Review your 80C needs annually. Explore other tax-saving sections like 80D (health insurance) & 80CCD (NPS) for substantial additional deductions beyond 80C.
Ready to plan your ELSS & other investments strategically? Use our SIP & Goal Calculators to hit your financial targets. Visit sipplancalculator.in and take control of your financial future!