I have been investing Rs 1 lakh a year in an ELSS fund. I want to know if the tax benefit will stop once the DTC comes into effect. -AK Agarwal
Yes, once the Direct Tax Code (DTC) comes into effect, the ELSS funds won't be eligible tax-saving investments. After the DTC, the only equity-related long-term tax-saving instrument will be the National Pension System (NPS).However, the DTC hasn’t come into effect for the past 2 years and even now, there are some talks about it being refined further. Hence, there is a small possibility that the DTC won't come into effect from 1st April 2013.