Does investing in Low-cost Index funds (like ICICI Prudential Nifty Index Fund, HDFC Index Nifty 50 Plan, UTI Nifty Index Fund, etc) have tax benefits in 80C?
No, Investments in index funds dont have tax benefits in 80C.
What about investment in corporate bond funds like HDFC corporate debt fund
Typically those funds with 80C applicability are marked as Equity Linked Savings Scheme (ELSS) or Tax Saving. These have a lock-in period of 3 years minimum. The index funds mentioned by you don’t seem to fall in the ELSS category. ELSS is the only mutual fund scheme that has tax benefits. Corporate Debt funds don’t have any such tax benefit.
Nope. Only ELSS funds.
Hey @NS0624,
You can claim the deduction for ELSS mutual funds u/s 80C. However, the deduction is only available if you opt for the Old Tax Regime from FY 2020-21.