Want to invest your money in funds and get profit out of it. Well, you can opt for SIP. A Systematic Investment Plan is a good way to manage your finances. Before telling you about is SIP tax free I would like to share with you what is SIP.
What is SIP?
The Systematic Investment Plan or SIP is a plan where an investor invests on a quarterly, monthly, or weekly basis at regular intervals. You can start by investing only Rs 500 if you are interested in SIP. You can terminate the investment at any time after the lock-in period if you are uncomfortable.
The main point of SIP is ' Save first, Spend next'. You do not need to invest in funds in one go. You can do it at regular intervals which makes the process seamless. Many people opt for SIP funds as they get good profits out of them.
Now the main question is: Is SIP tax free? I will provide a detailed answer to this question.
Is SIP is tax free?
The answer would be no. All SIPs are not tax-free. Under Section 80C an investor can claim a tax deduction of up to Rs. 1.5 lacs. Anything above this is taxable.
Some of the tax free investment options include Equity-linked savings schemes, Public Provident Fund, Employees' Provident Fund Unit Linked Insurance Plan. etc.
Other tax saving options include National Savings Certificate (NSC), Senior Citizens' Saving Scheme, etc.
I hope you now know is SIP tax free in India.
Avail yourself with end-to-end legal assistance from NoBroker while buying and selling property. Hop on for a free consultation call with the experts from NoBroker.Read more:
What Is Section 80C Of Income Tax Act?
Does HRA Comes Under 80C?
How To Save Tax Apart From 80C?
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Authors Of The Question
Is SIP tax free?
Arun
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1 Answers
2 Year
2022-03-22T16:15:58+00:00 2022-03-22T16:16:00+00:00Comment
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