I am confused with the approaching new tax regime and wish to know if I will get tax benefits under Section 80C on investments in tax saving mutual funds in 2011-12?
-Rajesh Ghotekar
The confusion over investments in tax planning funds with the impeding new tax code which is likely to come into effect from April 1, 2012 is understandable. Investments in tax planning funds qualify for deductions under Section 80C up to Rs 1 lakh in a financial year. You can invest in tax planning funds in financial years 2011-12, which still has six more months to go to enjoy the tax benefits on your investments. You can consider investing in Canara Robeco Equity Tax Saver or Religare Tax Plan, which are both five star rated and consistently performing tax planning funds. We suggest instead of a lump sum investment, you can stagger your investments over the next six months instead of SIPs in this category of funds.
This article was originally published on September 26, 2011.
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