Multiple choice general knowledge

ELSS stands for?

  1. Equity Linked Tax Saving Scheme

  2. Equity Linked Share Scheme

  3. Equity Linked Saving Scheme

  4. Equity Linked Share Saving Scheme

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

ELSS (Equity Linked Savings Scheme) is a tax-saving mutual fund that invests primarily in equity shares. Investments up to Rs. 1.5 lakh per year qualify for deduction under Section 80C of the Income Tax Act. ELSS funds have a mandatory lock-in period of 3 years, the shortest among all Section 80C instruments. Option A incorrectly says 'Tax Saving' instead of 'Savings', while options B and D incorrectly use 'Share'.