Lump Sum ELSS Investment According to the ELSS lock-in period of 3 years, you cannot redeem your units upto three years, i.e. until 1st December 2023. You can redeem all of your units or withdraw your investment only after 1st December 2023.

How do you maximize tax efficiency?

A good way to maximize tax efficiency is to put your investments in the “right” account. In general, investments that lose less of their returns to taxes are better suited for taxable accounts. Conversely, investments that tend to lose more of their returns to taxes are good candidates for tax-advantaged accounts.

How can I reduce tax when selling stock?

Avoiding the Capital Gains Tax

1. Hold investments for a year or more.
2. Invest through your retirement plan.
3. Use capital losses to offset gains.
4. Sell investments when income is low.
5. Donate your stock and kill two birds with one stone.
6. Don’t sell, just die.

Is maturity of ELSS taxable or not?

The Long-Term Capital Gains on ELSS are tax-exempt up to Rs 1 lakh, and dividend received is tax-free in the hands of investors. You can continue to invest in this scheme even after the completion of the lock-in period of three years.

Can I continue ELSS after 3 years?

All ELSS funds have a lock-in period of three years. Once the lock-in period ends for a particular instalment/lump sum investment, the ELSS becomes an open-ended equity-oriented investment scheme with full liquidity.

Which is the best solution to optimal taxation?

Keeping aside the Pareto optimality, one solution to the optimal taxation is that of imposing lump sum taxes. If all individuals were identical and were treated for tax purposes identically, a lump sum tax would be the only efficient tax.

Is there an alternative to optimal tax policy?

It concludes by sketching an alternative to optimal taxation, called the theory of optimal tax systems, which embraces the insights of optimal taxation but also considers the technology of raising taxes and the constraints placed upon tax policy by that technology.

Is the theory of optimal taxation still incomplete?

The theory of optimal taxation has , for the pas two decades , been the reigning normative approach of taxation. This paper argues that , in its current state, optimal tax theory is incomplete as a guide to action concerning many critical issues in tax policy. It is incomplete because it has not yet come to terms with taxation as…

What kind of taxes do you pay when liquidating a company?

Potential tax treatments of payments by liquidators, including: Taxed as a dividend – which could be franked Taxed as a capital payment – subject to capital gains tax Received tax free