Multiple choice

Which of the following is true for Equity Linked Savings Scheme (ELSS)?

  1. A tax rebate is available to investors in these schemes

  2. The investment has to be locked in for 3 years

  3. The minimum amount for availing tax rebate is fixed

  4. All of the above
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A Correct answer
Explanation

ELSS (Equity Linked Savings Scheme) offers tax benefits under Section 80C of the Income Tax Act. Investors can claim a tax deduction on investments up to Rs. 1.5 lakh in a financial year. The other statements are incorrect: there IS a 3-year lock-in period, and the minimum amount for tax rebate is NOT fixed (it's up to the Section 80C limit, which can change).

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