If I invest 150000 in ELSS and 150000 in PPF in the same year then after maturity what taxes will be applicable because they both come under section 80C? Is it a wise decision to invest in ELSS and PPF if the limit of 150000 is exhausted? Please explain with reasons and examples.
ELSS: It's a mutual fund and has 3 years of lock-in-period. There is no maturity, you can withdraw anytime after 3 years. Income tax @ 10% will be charged if there is a gain of more than 1 lakh.
PPF: It's a government scheme, and interest rates are fixed. It matures after 15 years, and it can be extended if you wish to continue. There is no tax on maturity.
In PPF, you cannot deposit more than 1.5 lakh in one year. But in ELSS, you can deposit any amount. After investing 1.5 lakh in ELSS, you can invest more in it or choose other investment alternatives.