Do mutual fund investments qualify for a tax deduction?

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Mutual Funds
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Mutual Funds

• Do mutual fund investments qualify for a tax
  deduction?
• Yes, mutual funds do qualify for a deduction
  under section 80C of the Income Tax Act.
• However you should be careful while purchasing a
  mutual fund if you intend to save taxes as well
  as earn money on investments. This is because
  only the Equity Linked savings schemes (ELSS)
  under mutual funds qualify for deductions from
  taxable income.
• These are the savings schemes that generally have
  a lock in period of 3 years. This means that
  these mutual fund instruments cannot be sold for
  3 years from the date of purchase.
• In this case you can claim a deduction of Rs.
  1,50,000 under the 80C limit of deductions.

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Mutual Funds

• Example
• If you invest Rs.100,000 in ELSS scheme for the
  financial year 2015 - 16 then you may claim this
  entire amount as a deduction u/s 80C as it is
  within Rs. 150,000.
• In this case you just need to make sure that the
  scheme in which you invest qualifies for a
  deduction and is eligible to be claimed u/s 80C.
• This can be known from either your tax advisor or
  from the investment advisor.
• At HR Block we make sure that you claim only
  those deductions that you are eligible for and
  hence calculate an accurate tax liability.

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Mutual Funds

• Thank You..!!
• For more info https//www.hrblock.in/