Recently 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!