HOW DTC-2012 WILL CHANGE THE WAY HOW U SAVE TAX!!!!

WELL THIS IS IN CONTINUATION TO WHAT I WROTE EARLIER:-

EARLIER I DISCUSSED ABOUT THE IMACT OF DTC-2012 ON INSURANCE, NOW LETS SEE THE IMPACT OF DTC-2012 ON EQUITY INVESTMENTS

EQUITY INVESTMENTS:-

• EXEMPTION ON LTCG CONTINUING IS A DEFINETELY POSITIVE NEWS.

• DEFINETE IMPACT ON PENSION FUNDS

          A PENSION FUND IS AN ANNUITY SCHEME. AN ANNUITY SCHEME IS AN INVESTMENT SCHEME THAT GIVES                 OUT A REGULAR INCOME.

PENSION PLANS REQUIRES AN INVESTOR TO PUT ATLEAST 65% OF THE CORPUS RECEIVED ON MATURITY IN AN ANNUITY WHICH GIVES HIM/HER MONTHLY PENSION.

DTC HAS PROPOSED TO MAKE ANNUITY INCOME EXEMPT FROM TAX WHICH MAKES THEM A GOOD TAX SAVING INSTRUMENT.

TAX PLANNING TIP :-  NPS (NEW PENSION SCHEME) IS A LOW COST PENSION FUND AN INVESTOR CAN CONSIDER.