ELSS will not be an option once DTC is enforced. Till we have the option I am definitely going to use it to get Full tax saving without investing one lac into the Best dividend paying Tax Saving Funds.
ELSS Tax saving funds will not be an option once DTC is enforced (See here) but DTC is not being enforced before March 31, 2012, so we have 2010-2011 and 2011-2012 as an option for Tax savings under ELSS. Till we have the option I am definitely going to use it to get Full tax saving without investing one lac into Best dividend paying Tax Saving Funds
But there are many question which still remains are.
- How these AMCs will treat their existing funds?
- Will these funds become yet another equity fund or will they switch the money to some other equity linked funds?
- Will they ask investor to forcibly redeem?
What are your views on DTC?
Thank you for appreciating the thoughts put forward.Never underestimate the power of a single good idea. All that is required is a PAGE 3 insert in the TIMES OF INDIA; on behalf of your readers, on the soundness and need to continue the ELSS schemes and lowering the age clssification for very senior citizens, including a waiver for interests earned by them.
In a country with little or no social benefits; the above is common sense and certainly worth drawing the F.M.’s attention.
An open letter to the F.M on page 3 of the TOI is the need of the hour.I would urge Mr. Shhabir to take the initiative. All the readers would only shower gratitude and appreciation, for his noble and yeoman service.Thanks.
I would request a knowlegeable person like Shabbir should write to the Finance Minister; to review and consider the continuance of the ELSS funds ; for tax saving, even after the implementation of the DTC.
The age nomenclature for very senior citizen should be brought down to the age of 65 or 70 , at the max.
Pension and interest income earned by senior citizens should be totaly tax free.
There are lot more people who know more than me and so I don’t think here the knowledge of the person would help but what could help is number of people.
I don’t think the AMCs will force investors to redeem, instead they will manage the funds in a similar manner, the only change which will happen is that investors will not get the tax deduction benefit, so their returns will be less after DTC.
But then there are 2 points to not allow that things.
1. A single fund house cannot have more than one fund in the same category. HDFC Fund had 2 ELSS funds and they had to change them into one fund.
2. ELSS funds provide lot more Dividend than normal funds and so not sure what will happen to that.