ELSS not in any of the tax sections

[srtrader]

Hi in the proposed tax structure for 2011 they have removed ELSS from the list. I am investing through ELSS and have opted ELSS for the next two years. Do I need to quit from ELSS or continue on the same?

 

[eeefellow123]

you can invest in elss, since the existing tax code applicable for the current investment even with new proposed tax code.

cheers

 

[srtrader]

Hi thanks for replying. One more question. Will the returns on ELSS be taxable then? I have heard something like that.

 

[eeefellow123]

The investment made in equity scheme of mutual fund attracts two taxes
Long term and short term capital gain tax. Since elss locked in for 3yrs, technically it attracts long term capital gain tax but in equity scheme long term capital gain tax is zero

So the it will n't attract any taxes.

Cheers

 

[srtrader]

Thank you