Sir
I plan to start investment in ELSS thru SIP for I TAX purpose.
If from the 37th month of SIP, I start a SWP for the amt of my monthly SIP; I continue to get Tax rebate without any further investment in real terms.
Pl advise if my above premise is correct and logical.
5 Answers
Hi,
You can claim tax rebate only for the investments made (SIPs) and not on SWPs.
I will clarify.
Monthly sip is say 10000/- which becomes , say 12000/- in 36 months.
In 37th month I withdraw 10000/- from this , pay no tax, and put it as 37th installment of SIP, so on and so forth.
e. g. 2nd month's is re invested in 38 th month; 3rd in 39th etc ?
Hi,
You may do so and can get the tax rebate.
But, may I know why would you like to adopt this strategy? Just for tax saving purposes?
Read:
http://www.relakhs.com/think-beyond-tax-investing-tax-planning/
No. I just wanted to get my facts right. I most likely will not start SIP in the 37th month. How ever, if saving tax is NOT the primary objective, than, is ELSS is a good investment tool given that I don't mind 3 yr lock in ?
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