Summary
- The article clarifies that gains from Equity Linked Savings Scheme (ELSS) investments are not tax-free, as they are treated as long-term capital gains (LTCG) taxed at 12.5% on amounts exceeding Rs. 1.25 lakh in a tax year.
- Vikram, who redeemed Rs. 6.2 lakh after investing Rs. 4.5 lakh over three years, faces a taxable gain of Rs. 45,000, resulting in a total tax of Rs. 5,850 after exemptions.
- It emphasizes that the Section 100 deduction claimed during investment is not reversed upon redemption and highlights strategies to minimize tax liability through timing and set-offs.
- Investors are encouraged to plan
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