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Non elss funds

Pooja Karadgi (Others) (9 Points)

15 September 2015

HI,

I am aware of the fact that ELSS schemes can be claimed under Sec 80C and that long term equity funds(Non-ELSS but gains from the equity mutual funds held for a period of more than a year) are tax exempt.

So supposing I am investing today and plan to hold the fund units for a year,should I declare this investment in the current finanical year?And will both the principal amount invested(either lumpsum or in the form of SIPs) and the interest earned be tax exempt?

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2 Replies

VIPINKUMAR K TIWARI (Financial Professional) (196 Points)
Replied 21 October 2015

Mutual Fund Investment SIP not allowed in 80C Deductions.

Miss Rinkal (Student) (1304 Points)
Replied 28 October 2015

@ Vipin:

Well if you had been talking of non elss sip then that is OK. Otherwise invt in Elss sip is eligible for 80c deduction

@ Pooja :

SIP/ Lumpsum in ELSS funds both are eligible for deduction u/s 80c.

For claiming deduction u/s 80C, mutual funds should be tax saving or elss mutual funds (both mean the same) and not others. There SIP is not the subject matter.

All equity MF are tax exempt after a year. But with elss, only thing is they have a lock in period of 3 years.

While investing through sip, period of holding would be taken from each investment date. Suppose, you are investing on 1 st of every month, then for may sip, year will complete on 30 April of next year

If it is non elss but an equity sip then is exempt after a year. Remaining all MF are taxable on redemption.

Hope I have made clear to doubts regarding sip or MF as the case may be