If i invest 40,000 in ELSS than howmuch money i will save as tax-saving?

I have heard in advertisement that investing 1 lac only gives 33,000/- tax benifit. what is this?

ELSS comes under 80c tax saving benefit. The maximum limit for investing in 80c tax benefit is Rs.1 lakh.

If you are in 30% tax bracket (if your income is Rs.3.5 lakhs), then the 1 lakh 80C benifit will save Rs.30,000. If your income is Rs.2.5 lahs only, then the same 1 lakh 80C will save only Rs.20,000. The 1 lakh 80c tax benifit will reduce your income with 1 lakh.

Example: Salary Rs.3,50,000 less 1 lakh 80C benifit. That means you have to pay tax on Rs.2,50,000 insted of tax on 3.5 lakhs.

In the same way you will get a benifit of 12,000 if you are in 30% tax salb, 8000 for 20% slab and 4000 for 10% slab on your Rs.40,000 ELSS.

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The amount of money you invest in ELSS is 100% Tax Deductible, i.e. the invested amount will be deducted from your total income while calculating tax. The actual amount you will save will depend on your tax bracket. Including 3% education cess, you will save Rs. 4120, 8240 and 12360 if you are in the 10%, 20% or 30% tax bracket. This will go up to Rs 12396 if your salary exeeds Rs 10 lakh (in which case you have to pay a 10% surcharge on the computed tax). Hope this helps..

If you are in 30% tax bracket (if your income is Rs.3.5 lakhs), then the 1 lakh 80C benefit will save Rs.33,000 .(30000 tax +3000 education cess) . Unless your total income is not known no one can answer your query?
If your income is below 1.50 lakhs: 40000 investment will save tax @10 % ie Rs.4000/ plus edn cess.If your income is below 2.50 lakhs: 40000 investment will save tax @20 % ie Rs.8000/ plus edn cess. If your income is above 2.5 lakhs:(atleast 2.90 lakhs) 40000 investment will save tax @30 % ie Rs.12000/ plus edn cess.

the percentage of saving depends on your total income. u have to give your totrl gross income for the year for us to find out how much tax u can save on your investment of 40,000/= rupees