I heard recently from one of the tax expert that the investment done in ELSS will be exempted for Tax. So for person in tax bracket with 10% can save 10% tax, 20% bracket will save up to 20% and a person with 30% bracket will be able to save 30% with a lock-in period of 3 years.
If we go with the theory a penny saved in penny earned then we can have atleast 10%,20, or 30% returns with ELSS plus whatever the fund gives return in that year which may be 10% in a year. It can be maximum 30+10=40% max for a person in 30% tax bracket.
However the maximum amount we can invest through this method is Rs.1,50,000/-. Can I get some inputs from members if my theory and calculation for the same is correct or not?