I want to know the long term view on ELSS funds with DTC implications in 2012-13?- Lokesh
Equity Linked Saving Schemes (ELSS) help you reduce your tax liability by offering tax deductions on investments up to Rs 1 lakh each financial year under Section 80C. However, with the DTC to come into effect from April 1, 2012; this category of fund will no more offer tax deductions as it is not in the list of products that offer tax deductions on investments. Investments in this category of funds till March 31, 2012 will qualify for tax benefits within limits with the mandated three year lock-in. The funds in all probability will be converted into a regular equity diversified category without any tax benefits after that. So, if you wish to reduce your tax liability make the most of the remaining time in this financial year.