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Tax planning has changed radically over a period of time. Because its time for filling income tax returns for 2007-2008 as the end date (31st march’ 08) is approaching. As a tax payer you need to understand the very best way through which you can make use of the exemptions provided by the government. Earlier people had limited choice of tax saving instruments to become used for the purpose of tax planning. But now with the ELSS (Equity Linked Saving Schemes) launched by most of the mutual fund companies, the whole approach towards tax saving has changed. With mutual funds tax planning had become more essential part of over all investment planning. With equity linked saving schemes the tax exemptions may be used in the manner such that you not just disciple your investments but also create excellent corpus through equity investment.
Tax planning for resident Indians
We recommend tax saving funds, also referred to as Equity-Linked Saving Schemes (ELSS) One such reason is that their benefits are too much to ignore as they hold almost all of the benefits of an equity mutual fund.
For one, they do not have any restrictions. If you choose to, you can invest the entire Rs 1 lakh available under Section 80C in these ELSS funds.
They give you the benefit of higher returns. You can get 8 per cent with your PPF and NSC. But if you can get a 40-50 per cent return, coupled having a tax benefit, what’s wrong with it?

How do you invest in an ELSS scheme? It is as simple as investing in any other mutual fund schemes. You just need to fill the form of particular ELSS scheme in which you desire to invest. Submit it through any transaction point while using required document i.e. usually PAN card and KYC form. That’s it your work is done. You can know more through website. In this you can get the understanding of selecting any scheme and filling the form.
The benefit 3 Years lock in period for ELSS schemes.
Secondly, in case you hate blocking your funds for many years on end, then this one surely made for you. The lock-in period for ELSS funds is just three many years. When you sell after three many years, you pay no capital gains tax. So, you get the tax benefit when investing and you pay no tax on your profits.
The most effective way to invest in a mutual fund is investing systematically through out the year making use of SIP. So you commit to putting away a fixed amount every month in mutual funds. This is an automatic savings habit that will hold you within the long run and help you not only to save but also invest regularly and continuously inside the capital marketplace through equity linked saving schemes (ELSS)
You need to become consistent in your investments to do well. The wonders which a disciplined investment can do cannot be replicated by even the most effective of investment strategies.
Wish to know about the top mutual funds for Tax Saving?
Most with the Mutual fund companies have come out with tax saving funds. They are Equity Linked Saving Schemes (ELSS) The funds collected under this tax saving schemes are invested in equity instrument, thus providing better returns. Many of these ELSS funds generate as much returns as a diversified equity fund. Using the awareness been increasing among the investor class, the equity linked saving schemes are gaining popularity among the investor class. To know more you can visit Godmind and get the collection of recommended tax saving funds    which is been provided by Godmind advisors. Also you can ask the Mutual fund Advisors on which ELSS (Equity linked saving scheme) fund to invest in.
Take step towards informed mutual fund purchase by investing with care and due diligence.

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