new dtc code-all chartered accountants please suggest!!!

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ok, the new DTC CODE is possibly going to be implemented from 1st April 2012 and thats causing me some dilemma , i have some money to be invested every month in some different categories, in this one is ELSS( equity linked saving scheme) for long term to save taxes upto 1 lac (under current tax law) , now in new tax code its draft says that they me disallow elss as tax saving instrument.now dillema is if i start from this year i will definitely get tax saving benefits, but if dtc is applicable from 1st april 2012 , then will i be able to continue it as tax saving instrument (because i had started wen it was considered tax saving instrument) or all investors would be deemed equal...???? whether new or old..???secondly there is another change regarding insurance policy premium benefits......if any CA could explain......????
 
Lets wait for the DTC, ATM its only recommendation
 
First thing - all recommendations of the DTC might not come into effect.Second - new taxes / charges etc have never usually come with pro-rata effect, therefore, your existing investments (made before the 1st of April, 2012, or whichever date the new tax code comes into effect) will continue to be taxed as per norms on the date of investment. However, withdrawals made after the new tax law, will come under the tax laws prevalent on those dates.
 
@agantuk, but the thing is to save tax u can make 1 lac investments in tax saving instrument right?? now if someone is alrady doing that for some years or maybe from 2011-12 itself , and somebody who will be starting from after april 2012, i am not sure these 2 different category of ppl would be differentiated . and as one has to do elss savings every year , it would affect individual tax saving plans in future .
 
I should have been a little bit more clearer in my previous post 🙂What I meant is that any investment made on any date will be taxed according to laws as on the date of investment. So even if you took your policy long back and were enjoying certain benefits (like sec 80c for instance), if during subsequent investments in the same policy, the tax laws have changed, you will be taxed accordingly.Let's take the example of a ULIP or traditional insurance policy, something which requires recurring payment. Currently premiums paid towards these policies are exempt upto 1L under 80C. If in 2012, the law excludes them from 80C exemption, any subsequent premiums you pay from 2012 (until any further tax rule changes), will NOT be eligible for the 80C benefit.I haven't mentioned an ELSS as they aren't recurring payments - you just pay once, and all subsequent payments to the same account are deemed as top ups - which also would attract taxes as on date of payment.
 
well but there are some ELSS'S , which are tax saving instruments.......and i want to invest in those only, but lets see , looks like will have to wait to know wat budget says about it and then decide.
 

I am already done and dusted with all tax related matters for this financial year.I will just wait for the budget and see what provisions are going to be applicable for the coming year. I believe it would be better to hold off this discussion till we get some clarity around this.
 
Ok sorry Toocool....i didnt notice this thread before today! Let me see what i can check out on this. I too have lost some touch on taxation, since i have chosen an IT background role, involving my accounting knowledge.But i love to do R & D in these areas, so i m sure to check out on this topic.
 
And now coming to ur original question....It all depends upon the final bill that becomes the Act. If they are generous enough, they might incorporate a provision by which any existing scheme in which u have invested will be allowed to be continued as such. But if u start a new investment, it will attract the provisions of DTC.I think they should be generous to this extent atleast, since its a large scale change of provisions.If not, then as Agantuk mentioned, it will attract the new provisions without any exceptions.
 

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