ELSS vs PPF | Differences between ELSS and PPF tax saving | Hindi

Podcast Duration: 07:45

Hello doston! Angel Broking ke is podcast mein aapka swagat hai.

Doston Covid ne pichle saal kai logon ke savings plans ka direction hi change kar diya. Kal main apne dost Shakul ke ghar gaya tha - hum uske gahr par 3 mahine baad chai pee rahe the . . . Oh god! Hum dono ki shaam ki chai Shakul ke ghar par hi hoti thi - aur covid ne hamari chai aur dosti ke beech 3 mahine ka gap introduce kar diya! Haha

Achcha chai aur dosti toh chalti rehti hai. Lekin covid pandemic ke time par Shakul Bangalor mein koi work from home -friendly place dhoondh raha tha. Iske chakkar mein uske investments disturb ho gaye. Kal hum uske finances discuss kar rahe the, aur is beech shakul ne tax savings ka sawaal uthaya. Yar taxes ki baat cheet kabhi purani hi nahi hoti - am I wrong?

Jab maine Shakul se apne taxes ke baare mein details poochi, toh, usne mujhe bataya ki he is paying over 1.5 lakhs in taxes every year. Ye sunkar I was shocked! Main bhi Shakul ke saath kaam karta hun, mujhe bhi same salary milti hai, and for doing the same work. Tab maine socha, ki ‘yaar shakul mere se 1 lakh zyada taxes kyun pay kar raha hai’?

Ye question answer karne ke liye, hum dono chai peene ke baad Shakul ke taxes review karne ke liye baith gaye. And guess what I found out? Shakul kewal do instruments mein invest kar raha tha - mutual funds, aur sona. Tab mujhe samajh aaya ki main Shakul se kam taxes kyun de raha hoon. Yaar mera vishwas karo, taxes save karna itna bhi mushkil kaam thodi na hota hai - kyunki jab maine Shakul ko in do instruments ke baare mein bataya, toh Shakul completely convinved tha - woh samajh gaya ki tax save karne ka ye perfect raatsa hai! Aur ab main in dono instruments ke baare mein aapko bataane jaa raha hoon. Well, more like introducing you to these two things.

Aur ye do instruments hain PPFs and ELSS. Ye dono hi kuch complicated acronym jaise sound kar rahe honge, but trust me - ye bahut hi basic investment and savings schemes hain, aur inke baare mein uch bhi complicated nahi - except the fact that they save you taxes if you invest in them.

Taxes bachao, aur investments se aur paise earn karo - Sounds like a win-win, doesn’t it? Exactly

Alright, so PPFs and ELSS se aapke taxes save honge - lekin kaise? Janne ke liye, continue listening about the differences between PPFs and ELSS.

Number 1 - Sabse pehle dekhte hain ki yue dono instruments karte kya hain. PPFs basically government backed investments hote hain, jinme aap apne savings long term ke liye invest kar sakte ho. ELSS, ka full form hota hai equity linked savings scheme. ELSS mein aap short or long term ke liye invest kar sakte ho, and ye schemes aapke paise ko equity markets ka exposure deti hain. Ye toh hua functional difference. Arre main PPFs ka full form toh batana hi bhool gaya - PPF stands for Public Provident Funds. If you are looking for a recap, toh ye difference samajhiye - PPFs government backed investments hote hain, aur ELSS are linked to equity markets.

Number 2 - Ab dekhiye ki in dono schemes mein investment actually kaise kaam karta hai. Is maamle mein ELSS aur PPFs ko samajhna bahut simple hai - inme aap basically monthly payments karte ho, ya fir lump sum.. Kabhi recurring deposit ya fir mutual funds mein invest kiya hai? ELSS are very similar to them - aap ek baar mein kuch set amount pay kar sakte ho - on top of which your gains accumulate over the lock in period. Ya fir, you can make regular monthly payments. Which option you choose is up to you, lekin if you are salaried, a monthly investment option is a better idea. On the other hand, if you are a business owner, toh lump sum deposits might make more sense for you.

Number 3 - Ab in investments ko timing ke point of view se dekhte hain - and this is arguably the biggest point of difference between PPFs and ELSS. PPFs are basically designed for long term investments. Isliye, you will have to keep your funds locked into your PPF account for at least 15 years - although you can withdraw a partial amount after 6 years. ELSS mein aapka lock in period 3 saal tak rehta hai - after which, you can choose to extend your investment period further. Now you probably know ki agar aapko ek car ya new laptop purchase karne ke liye kis scheme mein invest karna suitable hoga, am I right? That’s correct - ELSS - kyunki ELSS helps you save and grow your money in the short run!

Number 4 - Achcha main baat toh karna bhool hi gaye. Kya ELSS aur PPF ki tax savings mein koi difference hai? Ji bilkul - is point me yahi difference dekhenge.

PPFs aur ELSS - dono mein aapki investment amount tax free hoti hai. Lekin kuch limitiations hote hain - PPFs mein aap maximum 1.5 lakhs saalaana contribute kar sakte ho, jabki ELSS mein there is no such limit. ELSS aur PPF mein gains ke tax treatment mein bhi ek bada difference hai. ELSS mein 1 lakh tak ke capital gains tax free hote hain. Uske long term capital gains par 10% ke rate par tax charge hota hai. PPFs mein maturity par milne waala amount bhi tax free hota hai. Cool, haina? Is liye, PPFs aur ELSS India mein ek naye earner ke portfolio mein zaroor hona chahiye. But more on that later.

Ab dekhte hain last point - that is, number 5 - How volatile are these investments? Iske liye, in instruments ki inner workings ko samajhna padega. PPFs basically government ko loan dene ki tarah hota hai - aur is loan par aapko interest milta hai. On the other hand, ELSS mein aapke paise equity markets mein invest hote hain. PPFs ke liye toh volatility ka sawaal hi nahi uthta hai. On the other hand, ELSS mein volatility market conditions aur other factors se vary karti hai.

Toh friends, ELSS and PPFs kee beech humne kuch major differences dekhe. Ab you might be thinking ki yaar kisme invest kiya jaaye? Am i right about that?

Don’t worry, ye question jald hi review karenge. Lekin uske pehle ek baat socho - ELSS basically short term investment instrument hai, aur PPFs are meant for long term investments. Firstly, investment ke mudde par toh har insaan ke alag alag short aur long term goals hote hain. Ho sakta hai, ki aapka short term plan hai car ya motorcycle khareedna, lekin saath hi, aapko 20 saal mein ek ghar khareedkar settle bhi hona hai. Isliye, we recommend ki ye dono plans ko max out karo, aur taxes save karte hue, dono se long aur short term goals fulfil karo

Ab toh aap samajh hi gaye hoge, ki PPF and ELSS ke beech choose karne ka koi matlab nahi banta. Aapke liye dono hi sahi hain, aur aapko dono mein invest karna chahiye. Do note ki section 80C ke according dono investments par tax exemption combined 1.5 lakhs tax capped hai.

Lekin tax saving ka ek aur perspective bhi hai - Agar aap ek high earner ho, toh both of these instruments become a must for you to invest in. Dekhte hain kyun.

Suppose ki aapki income 15 lakhs hai. Which means you are currently paying taxes at 30% on your tax slab. Iska matlab ye hai, ki even if you are investing in mutual funds with 15+% returns, tab bhi aap apne gains par 30% toh taxes mein pay karoge. Isko ELSS se compare karke dekho - jahan pe 1 lakh ke gains ke upar aapko 10% taxes hi pay karna padenge.

Sounds like a plan for tax savings, doesn’t it? Then why not get started with it? Friends, don’t forget ki tax savings ek continuous process hota hai. Isliye, naye opportunities aur rules par hamesha nazar banaye rakhen . If you are actively looking for them, then don’t forget to check out Angel Broking’s youtube channel - wahan pe you will find tons of resources to help you save taxes.

Toh doston, aaj ke podcast mein bas itna hi. Milte hain firse, sometime later - until then. Goodbye from Angel Broking, and happy investing!