Question 23 of 90
Equity Linked Savings Schemes (ELSS) are eligible for deduction under Section 80C of the Income Tax Act. However, such schemes have a lock-in period of
A
3 years from the date of allotment of each individual unit
B
3 years from the date of the original investment, even in the case of subsequent purchases
C
5 years from the date of allotment of each individual unit
D
If the tax exemption is not availed, there will be no lock-in period
Correct Option:
A
Explanation
Equity Linked Savings Schemes (ELSS) qualify for tax deduction under Section 80C of the Income-tax Act and carry a mandatory lock-in period of three years. Each investment, including each SIP installment, is locked in separately for three years from its own date of allotment.
