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if direct tax comes in financial year 2013-14 is it good option to invest in ELSS in 2012-13 year as ELSS has 3 year locking period then 2013-14 and 2014-15 no tax rebate will be given still we can't take out money? asked Jan 13 '12 at 20:18 by suren 41●14●16●25 |
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If Direct tax code is applicable from 2013-14, then it would still make sense to invest into equity linked tax saving mutual funds in FY 2012-13. Income tax deduction/exemption for investments is only provided in the year in which actual investment in made. So if you invested in 2011-12 in ELSS, you would get tax benefit for same in 2011-12. Next year would again be a new year and you would need to invest again to claim tax benefit. Tax saving equity mutual funds are tax saving investment with least lock-in period (3 years). Other tax savings have even more lock-in (Fixed deposit - 5 year, PPF - 15 years etc) answered Jan 15 '12 at 17:28 by Pankaj Batra 5.2k●3●20 |