India launched the Rajiv Gandhi Equity Savings Scheme in late-September, an initiative that aims to bring millions of first-time investors into stocks by offering a tax incentive to deepen market liquidity and reduce a reliance on gold savings.

Following are details of how the scheme works:

* First-time Indian investors earning less than 1 million rupees a year would be eligible for a 50 percent tax break on stock investments of up to 50,000 rupees.

* Investors will have half of however much they invest deducted from their tax bill.

* Investors can buy stocks directly or through mutual funds or exchange traded funds.

* Eligible investments are restricted to the top-100 stocks traded on the Bombay Stock Exchange and National Stock Exchange, as well as state-owned companies.

* The scheme imposes a 1-year blanket lock-in clause, meaning no changes can be made to the portfolio, and participants need to keep their money invested for at least three years.

* The scheme was proposed in the 2012-13 union budget by then Finance Minister Pranab Mukherjee, and was launched on September 21.

* India wants to tap the potential of the savings conscious urban and semi-urban middle class and turn equities into an attractive alternative to gold and cash.

* The scheme is also intended to reduce markets' dependence on volatile foreign flows.

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

1. ICICI Prudential Tax PlanInvest Online
2. HDFC TaxSaver Invest Online
3. DSP BlackRock Tax Saver Fund Invest Online
4. Reliance Tax Saver (ELSS) Fund Invest Online
5. Birla Sun Life Tax Relief '96 Invest Online
6. IDFC Tax Advantage (ELSS) Fund Invest Online
7. SBI Magnum Tax Gain Scheme 1993 Invest Online
8. Sundaram Tax Saver Invest Online
9. Edelweiss ELSS Invest Online
   

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Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also