POSTED BY October 10, 2012 1:23 pm ONE COMMENT
ONRecently I visited the HDFC bank to create a new savings account for my wife. As usual, the HDFC person started proposing ULIPs, and other investment options. During our conversation he said the investment done in ELSS mutual fund (like ICICI Prudential Tax Saver) does not attract tax excemption on the returns. Only the investment (principal) is excempted if you keep invested for 5 years (not 3 yrs which is locking period).
I was shocked because as per my knowledge both investment + returns were tax free.
Can you please clarify on this to me!
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There is nothing to worry .. The guy just wanted to try to pursuade you to buy his stuff .
Any Equity investment either directly or via mutual funds is exempted from income tax after 1 yr, thats long term capital gain , So ELSS funds are also exempted from income tax for profits part .
Dont worry ! . Next time this happens, just ask him to give it in writing and then meet the bank manager and ask him why you should not give this written thing to media ! .
Manish