In 2012, my husband and I invested in ELSS for tax savings. We forgot about them until a few weeks ago. If we do not redeem it for another year, could we claim tax deductions on it again?
Varalakshmi Rao, Hyderabad
Investments in ELSS qualify for tax deductions under Section 80C of the Income Tax Act, and the investment has a lock-in of three years. Your investments in the ELSS have surpassed this three year lock-in and you have already claimed the tax deductions in 2012 against this investment. For you to claim further tax deductions on this invested sum, you will need to redeem it and then redeploy it. There is no automatic route to claim tax deductions for an ELSS investment without redeeming the investment after the lock-in and then reinvesting the same.
