Do all mutual funds qualify for tax benefits under Section 80C?
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Only investments in equity linked saving schemes or ELSSs qualify for tax deduction under section 80C. Investors can claim tax deduction of up to Rs 1.5 lakh under Section 80C of the Income Tax Act. All ELSS funds qualify for the tax deduction under Section 80C.
Investments in NPS qualify for exclusive tax deduction under Section 80CCD(1B). That means you can invest Rs 1.5 lakh for deductions under Section 80C, and extra Rs 50,000 for additional benefit under Section 80CCD(1B).
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