DTC:Bye bye To ELSS Funds

DTC: Bye Bye to ELSS Funds

From March 2012, the ELSS funds will be history. Yup, after the implementation of Direct Tax Code (DTC), the ELSS Funds will be history.

And after that no Equity instrument will give you the tax benefits like ELSS. And in my opinion, the ELSS which are currently exists in the Indian stock market will become plain vanilla funds without any lock-in periods.

Now, many people ask me that what next then? How they will save more tax after removing ELSS Funds from tax exemption?

Well, we will still have a basket of products in which we can invest to save taxes such as PPF, NSC, Life Insurance Premiums…etc…

Thus, there will be no problem at all for tax saving. The only thing is that, the equity related instruments won’t be available as a tax saving instruments in India.

So gone are the days where people used to invest lots of money in the ELSS to save lots of tax.