ELSS - Mutual funds (annual)

• Short lock-in period of 3 years
• Generally, premature withdrawal is not allowed.
• Can claim deductions under Section 80C up to Rs.1,00,000.
• Long-term capital gains and dividends are tax free under Section 10(38) and Section 10(35), respectively.
• Rebate under Section 88 with a sub-ceiling of Rs.10,000/- within the total of Rs.60,000/- The contribution of Rs.10,000/- earns a rebate of Rs.2,000/- resulting in an actual investment of Rs.8,000/.