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Are there any tax benefits for investing in socially responsible or environmentally friendly companies?

Curious about Taxes Investment

Are there any tax benefits for investing in socially responsible or environmentally friendly companies?

Yes, in India, there are tax benefits for investing in socially responsible or environmentally friendly companies. The government has introduced a taxsaving scheme called the Equity Linked Saving Scheme (ELSS) that allows investors to claim tax deductions of up to Rs. 1.5 lakh under Section 80C of the Income Tax Act, 1961. ELSS invests primarily in equity shares of companies, and some of these funds are dedicated to investing in companies that have a good environmental, social, and governance (ESG) track record. By investing in ELSS, individuals can not only save taxes but also support sustainable and socially responsible investment practices. Additionally, certain states in India provide tax incentives for investments in renewable energy projects. These incentives can be in the form of tax holidays, capital subsidies, or accelerated depreciation benefits.

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