I understand, you're asking for a comparison of the tax benefits under Section 80C of the Income Tax Act for investments in PPF (Public Provident Fund) and ELSS (Equity Linked Savings Scheme), rather than comparing PPF with ELSS hand line.
I understand, you're asking for a comparison of the tax benefits under Section 80C of the Income Tax Act for investments in PPF (Public Provident Fund) and ELSS (Equity Linked Savings Scheme), rather than comparing PPF with ELSS hand line.
PPF (Public Provident Fund):
* Investments in PPF are eligible for tax deductions under Section 80C of the Income Tax Act.*Contributions made towards PPF can be claimed as deductions from taxable income, up to a maximum limit of ₹1.5 lakh per financial year.*Additionally, the interest earned on PPF investments is tax-free, and the maturity amount is also exempt from tax.*PPF is a long-term investment scheme with a lock-in period of 15 years, providing stable returns and financial security, particularly for retirement planning.ELSS (Equity Linked Savings Scheme):
*ELSS is a type of mutual fund scheme that primarily invests in equity and equity-related instruments.*Investments in ELSS are also eligible for tax deductions under Section 80C of the Income Tax Act, up to the same maximum limit of ₹1.5 lakh per financial year.*However, ELSS investments come with a shorter lock-in period of 3 years, which is significantly shorter than PPF.*ELSS has the potential to offer higher returns compared to traditional investment options like PPF, but it also carries higher market risk due to its exposure to the equity market.
