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Weigh DTC provisions while choosing tax saving instruments
January, 03rd 2012

Text courtesy: Amarpal S Chadha, Tax Partner, Ernst & Young

It is that time of the year when people make investments for tax saving. As an investor, when you think about investments, you have to keep in mind that the existing tax laws will undergo a major change by April 2012, with the implementation of the Direct Tax Code (DTC). DTC has suggested some major changes in the way tax saving instruments are positioned. One has to ensure that the investments which are eligible for 'tax saving' under the existing tax laws would also continue to reap benefits under the DTC.

The avenues available for tax saving investments are less under the DTC compared to the existing tax laws. Following are some of the key proposals under the DTC which could impact your investment decisions.

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