ELSS and the DTC Impact

#1
Hi,

I want to know from people here about ELSS. Firstly, is it likely that the Direct Taxes Code (DTC) will come into effect for the April 2013 financial year? I actually want to invest in the ELSS for tax benefits and want to know if it is a good option.

If not, where else would you suggest I invest for tax benefits? Thanks.
 
#2
The DTC in its current form is expected to do away with the ELSS's tax benefit. However, the DTC was expected to come into force in FY11 (thats when I first heard about it), and now we are at the door steps of FY14. So one cannot predict when the DTC will come into effect although expectations as always is that it will be effective next financial year!

ELSS is definitely a good option for long term wealth building while saving taxes in the present. However, spread out your investment across the year, instead of going in at one-go. This would keep the risk involved in this instrument under check.
 

megapixel

Well-Known Member
#3
The DTC in its current form is expected to do away with the ELSS's tax benefit. However, the DTC was expected to come into force in FY11 (thats when I first heard about it), and now we are at the door steps of FY14. So one cannot predict when the DTC will come into effect although expectations as always is that it will be effective next financial year!

ELSS is definitely a good option for long term wealth building while saving taxes in the present. However, spread out your investment across the year, instead of going in at one-go. This would keep the risk involved in this instrument under check.
Hi Kool

I liked your post. Could you please clarify (example would be excellent) regarding spreading out investment ? Is it just SIP or you mean something else ?
 
#4
Hi Kool

I liked your post. Could you please clarify (example would be excellent) regarding spreading out investment ? Is it just SIP or you mean something else ?
SIP............or voluntary monthly / fortnightly / weekly investments (whichever you are comfortable with). The idea is that you enter the market not at one go but at different intervals of time. In this way, you reduce the impact of volatility on your investment. (Upside and Downside are both reduced in this way).