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DTC and ELSS

Asset management companies are likely to run these schemes as open-ended equity funds

I have an SIP of Rs 1000 in Fidelity tax advantage fund. With DTC coming into effect from in 2012, what will happen to this ELSS investment? Should I continue with this ELSS fund or stop investing?
- Senthil Kumar K

You are right that the relevance of tax benefits in ELSS will cease to exist once DTC comes into play. How AMCs will treat existing tax planning funds is yet to be seen.

However, you will get the Section 80C benefits in the ELSS that you hold currently and also in any of the ELSS investments you make before April 2012.

This article was originally published on November 23, 2010.

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