Hey Ankur. I am a tax resident in India. I have always avoided parking funds I tax saving instrument thinking it will block the fund if I have to leave India. Suppose I hit ceiling of all deductions and claimed tax deduction and the next year, I am to.leave India by liquidating(Elss), how does it work?
Hi Pratik, if you have completed 3 years, then it won't matter whether you are in India or abroad. You can liquidate your investment from anywhere. However you cannot liquidate from ELSS before completing 3 years from the date of investment. The money stays locked in for 3 years.
[Please note that in case of SIP, this 3-year period is counted for EACH installment. So if you start an SIP in January 2020 for say, Rs. 10,000 every month, and continue till March 2021, then in January 2023 you will only be able to withdraw the amount (plus returns) that was invested in January 2020. Then, every month, the SIP amount (plus returns) will mature for each installment paid. The final withdrawal would be possible in March 2024, i.e 3 years after the last installment that you paid]
Hey Ankur. I am a tax resident in India. I have always avoided parking funds I tax saving instrument thinking it will block the fund if I have to leave India. Suppose I hit ceiling of all deductions and claimed tax deduction and the next year, I am to.leave India by liquidating(Elss), how does it work?
Hi Pratik, if you have completed 3 years, then it won't matter whether you are in India or abroad. You can liquidate your investment from anywhere. However you cannot liquidate from ELSS before completing 3 years from the date of investment. The money stays locked in for 3 years.
[Please note that in case of SIP, this 3-year period is counted for EACH installment. So if you start an SIP in January 2020 for say, Rs. 10,000 every month, and continue till March 2021, then in January 2023 you will only be able to withdraw the amount (plus returns) that was invested in January 2020. Then, every month, the SIP amount (plus returns) will mature for each installment paid. The final withdrawal would be possible in March 2024, i.e 3 years after the last installment that you paid]
Hope this helps!