.....is an open-ended Equity Mutual Fund that doesnt just help you save tax, but also gives you an opportunity to grow your money. It qualifies for tax exemptions under section (u/s) 80C of the Indian Income Tax Act.

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

____is an open-ended Equity Mutual Fund that doesn’t just help you save tax, but also gives you an opportunity to grow your money. It qualifies for tax exemptions under section (u/s) 80C of the Indian Income Tax Act.

A	CRR
B	RTGS
C	EFT
D	ELSS

Explanation:

Detailed explanation-1: -ELSS or Equity Linked Saving Scheme funds are tax saving mutual funds, in which the majority of the funds are invested in equity schemes. The investments in ELSS receive tax benefit under section 80C of the Income Tax Act.

Detailed explanation-2: -You make long-term capital gains on selling your equity fund units after a holding period of one year or more. These capital gains of up to Rs 1 lakh a year are tax-exempt. Any long-term capital gains exceeding this limit attracts LTCG tax at the rate of 10%, and there is no benefit of indexation provided.

Detailed explanation-3: -Mutual fund tax benefits under Section 80C-Investments in Equity Linked Savings Schemes or ELSS mutual funds qualify for deduction from your taxable income under Section 80C of the Income Tax Act 1961. The maximum investment amount eligible for tax deduction under Section 80C, is Rs 1.5 lakhs.

Detailed explanation-4: -ELSS or tax saving mutual fund schemes help investors ( Individuals / HUF) save tax under Section 80C of the Income Tax Act, 1961. Investments in ELSS are subject to a lock-in period of 3 years and qualify for a tax deduction of upto Rs 1.5 lakh.

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