I have a monthly income of Rs 25,000 and live with my parents. I want to know if I should invest in ELSS for the current financial year. Could you suggest some funds to invest?
Smriti Joshi, Delhi
Investing in equity-linked savings scheme or ELSS is a good move, especially to save on your income tax liability. Each financial year, you can invest up to Rs 1.5 lakh in these funds to claim tax deductions under Section 80C of the Income Tax Act. You could invest in Franklin India Taxshield or Axis Long Term Equity, which are both ELSS, in which you could invest and claim tax deductions. The three – lock-in with investments, diversification and tax savings, all augur well for your financial wellbeing.
