What does tax saving scheme works ?

These schemes offer tax discounts to investors in accordance with specific provisions of Income Tax Act, 1961. This is because the government offers tax incentives to invest in certain avenues. For example. Equity Linked Savings Programs (ELSS). These mutual funds also offer tax advantages to pension plans. These schemes invest predominantly in equities and are growth-oriented. These schemes have the same growth potential and associated risks as any equity-oriented plan.