How accurate is the SIP calculator?

Our SIP calculator provides estimates based on the expected return rate you input. Actual returns may vary due to market conditions and fund performance.

What is the minimum amount for SIP investment?

Most mutual funds allow SIP investments starting from ₹500 per month. However, some funds may have different minimum amounts.

Step-up SIP allows you to increase your SIP amount annually by a certain percentage. This helps combat inflation and accelerates wealth creation.

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Tax Benefits Guide

Tax Benefits of SIP Investment

Maximize your tax savings while building wealth through SIP investments. Learn about ELSS funds, Section 80C benefits, and smart tax planning strategies.

₹1.5L

Annual 80C Limit

3 Years

ELSS Lock-in Period

₹46,800

Max Tax Saving (30% slab)

ELSS (Equity Linked Savings Scheme)

The best tax-saving investment option under Section 80C

What is ELSS?

ELSS are equity mutual funds that offer tax deduction under Section 80C of Income Tax Act. They invest primarily in equity and equity-related instruments, providing potential for higher returns compared to other tax-saving options.

Key Benefits:

• Tax deduction up to ₹1.5 lakhs under Section 80C
• Shortest lock-in period (3 years) among 80C options
• Potential for inflation-beating returns (10-15% annually)
• Can be invested through SIP for rupee cost averaging

Tax Calculation Example

Annual Income:₹10,00,000

Tax without 80C:₹1,12,500

ELSS Investment:₹1,50,000

Tax after 80C:₹67,500

Tax Saved:₹45,000

*Calculation based on old tax regime for 30% tax slab

Section 80C Options Comparison

Compare ELSS with other tax-saving instruments

Investment	Section	Limit	Lock-in	Returns	Liquidity	Tax on Maturity
ELSS Mutual FundsRecommended	80C	₹1.5 Lakh	3 Years	10-15%	High (after lock-in)	LTCG: 10% above ₹1L
PPF	80C	₹1.5 Lakh	15 Years	7-8%	Low	Tax Free
NSC	80C	₹1.5 Lakh	5 Years	6-7%	No	Taxable
Tax Saver FD	80C	₹1.5 Lakh	5 Years	5-6%	No	Taxable

Mutual Fund Taxation Rules

Understanding tax implications of different mutual fund categories

Equity Mutual Funds

Long-term Capital Gains (>1 year)

• Tax rate: 10% (without indexation)
• Exemption: Up to ₹1 lakh per financial year
• Tax only on gains above ₹1 lakh threshold

Short-term Capital Gains (≤1 year)

• Tax rate: 15% (flat rate)
• No exemption limit
• Tax on entire gain amount

Debt Mutual Funds

Long-term Capital Gains (>3 years)

• Tax rate: 20% (with indexation benefit)
• Indexation reduces taxable gains
• More tax-efficient for longer holding periods

Short-term Capital Gains (≤3 years)

• Added to income and taxed as per slab
• Can be 5% to 30% based on income
• No indexation benefit

Income Tax Slabs FY 2024-25

Choose the regime that offers maximum tax savings

Income Range	Old Regime	New Regime
0 - ₹3 Lakh	0%	0%
₹3 - ₹6 Lakh	5%	5%
₹6 - ₹9 Lakh	20%	10%
₹9 - ₹12 Lakh	20%	15%
₹12 - ₹15 Lakh	30%	20%
Above ₹15 Lakh	30%	30%

Note: Old regime allows deductions under Section 80C, 80D, etc. New regime has lower tax rates but limited deductions. Choose based on your investment pattern.

Smart Tax Planning Tips

✅ Do This

• Start ELSS SIP early in the financial year
• Hold equity funds for more than 1 year for LTCG benefits
• Use SIP for ELSS to get rupee cost averaging
• Keep track of your 80C limit (₹1.5L annually)
• Plan redemptions to optimize tax liability
• Consider step-up SIP to maximize 80C utilization

❌ Avoid This

• Don't invest in ELSS just for tax saving
• Avoid redeeming equity funds before 1 year
• Don't exceed ₹1L LTCG limit unnecessarily
• Avoid lump sum ELSS investment in March
• Don't ignore expense ratio while choosing ELSS
• Avoid frequent switching in tax-saving funds

Start Your Tax-Saving SIP Today

Calculate your optimal ELSS investment amount and start saving taxes while building wealth

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