Dear Sir,can you tell me that what would be the effect of this DTC on the market,on the states and on the Individuals.It would be effective or not?
1 Answers
As Direct tax code (DTC) has been declared well in advance, there won't be any surprising impact on market. Industry will be prepared by 1st April, 2012 for the upcoming changes.
As Equity mutual fund and ULIP have been removed from exemption list, this may impact somewhat to investment in equity markets, but the same will be covered by opening of new avenues like New Pension Scheme (NPS) which also invests into equities. Moreover the contributions from retail investor in form of tax saving instruments is very small as compared to investments from FII and other investors, so there should not be much impact.
Insurance industry will have to correct its plans as they will have to sell more people friendly plans (pure insurance and medical insurances).
Rest only time will tell how industry takes it!
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