Tax Exemption on new savings plan

Hi Pankaj .. thanks for all the info .. this site was of real help to me. Im planning to start investing(Begineer) on mutual and equity funds and SIP. I have doubts w.r.t to investing.

Please help me in understanding the following :: 1) Is this the right time to invest in this funds

2) As per DTC , pls confirm if all investments made on the above funds will not be part of tax exemption ? and incase of withdrawl will there be tax exemption for investments on above and fixed deposits and postoffice savings

3) could you suggest a better portfolio diversification for me

4) could u brief on EEE and EFT ..

Thanks in Advance

Regards, Krishna

asked Sep 18 '11 at 18:38 by krishna 1111

  1. Its always right time to invest through SIP as cost of purchase of units is averaged out.
  2. Mutual fund invest won't have any tax benefit after direct tax code is applied. If equity mutual funds are kept for more than a year, it becomes long term gains and there is no income tax on these gains. But income from fixed deposits and post office savings is taxable as per your slab rates.
  3. Portfolio diversification depends on your short/long term needs, risk capacity and other factors. It can't be created without knowing investor's details. Its a full fledged work of financial planner.
  4. EEE or EET defines tax-ability at the time of investment, earning and withdrawal respectively. E means exempt and T means taxed.

answered Sep 24 '11 at 15:13 by Pankaj Batra 5.2k320


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Asked: Sep 18 '11 at 18:38

Seen: 2,093 times

Last updated: Sep 24 '11 at 15:13