The Income Tax Act allows some deductions from taxable income, which can help Deepak reduce his tax liability and kick-start savings.
Section 80c the legal way to save taxes
You can save taxes upto Rs. 46,350 by investing in an 80C approved investment
Note:Tax calculations have been made as per IncomeTax slabs applicable for AY 2017 - 18. It is assumed that the assessee has no other income except income from salary.
The Govt. approved tax-saving investments are ELSS, PPF, NSC and FD. Each one has different lock-in periods, minimum & maximum amounts, degree of possible returns & liquidity options.

Deepak's father is risk-averse and suggests that Deepak invest in the safe & traditional PPF. But Deepak wisely also considers ELSS, recommended to him by his financial advisor.

What are the benefits of ELSS?

Tax Exemption on investment, dividend income & redemption proceeds.

Chance to earn higher returns on funds invested in equity market.

Better Liquidity with a 3 year
lock-in period.

*INR 70,000 Invested every year for the last 15 years
ELSS - INR. 57.8 Lakh
PPF - INR 31.9 Lakh

ELSS could reduce the risks associated with investments in the long term and diversifies Deepak’s funds for added safety.

*Proxied by (CRISIL - AMFI ELSS Fund Performance Index). Data for the period of 01/06/2001 to 31/03/2016. Source - Crisil, www.epfindia.gov.in

Why SIP?

Deepak's financial advisor suggested that he invest through a Systematic Investment Plan (SIP) in ELSS with small amounts at regular intervals, instead of putting in a large lump sum at the year end. The benefits of SIPs:

Small periodic diversified investments to average the cost

Smaller monthly
cash outflow

Opportunity to earn returns
from the start of the year

Savings: Deepak will benefit from the tax savings of ELSS.

Goal based investing: Deepak can use ELSS for long term investing – whether retirement, house or children's education!

Deepak educates his friends about ELSS and helps them choose the wise option over their auto mode PPF allocation.

Are you like Deepak’s friends? Do you invest INR 1.5 Lakhs of your hard earned money into PPFs without a thought? Think again! Take your 80C investment beyond the narrow purpose of tax-savings.

Protip! You can redeem INR 1.5 Lakhs from an ELSS after 3 years and reinvest the same to earn tax benefit for that year!

TAX SAVER FUND

THE RIGHT TIME TO SAVE TAX IS RIGHT NOW.

DSP BlackRock & HDFC Securities have joined forces to bring you ELSS plans to suit your needs. Both are globally respected names and have a proven pedigree. So don’t just save a penny, click on the “Invest Now” button and get a chance to earn a penny on top of the penny you saved.

Less than 1 year Absolute returns, Greater than or Equal to 1 year Compound Annualized returns.

Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments.

Suitability

This scheme is suitable for investors who are seeking:

Long Term capital growth with a 3 year lock in.
Investment in equity & equity related securities to form a diversified portfolio.

Riskometer

Click here To view performance in SEBI prescribed format.

The returns mentioned is as of November 30, 2016.
Investors should consult their financial / tax advisors if in doubt about whether the product is suitable for them.

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