Budget 2023: Govt likely to introduce Debt-Linked Savings Scheme on lines of ELSS, deduction under 80C
Budget 2023 and tax deduction under 80C: The lock-in period in DLSS should be three years just like in the case of ELSS.
The government is actively considering bringing the Debt-Linked Savings Scheme (DLSS) on the lines of the Equity Linked Savings Scheme, sources from the Finance Ministry told Zee Business today.
Sources said that asset management companies will be able to launch ELSS-like schemes with debt instruments at the core. As per the provision, 80 per cent of DLSS will have to be invested in debentures and bonds of the company only.
The government is also considering giving tax exemption in DLSS on the lines of ELSS under 80C. The lock-in period in DLSS should be three years just like in the case of ELSS.
With just a couple of weeks left for the budget, all eyes are on the tax exemption and what tax benefits the BJP-led government will offer in its last full budget before the 2024 general elections. During the pre-budget meeting of the Finance Ministry with several industry players, the Association of Mutual Fund India (AMFI) suggested bringing tax uniformity for mutual funds, NPs and DLSS.
They proposed tax uniformity in DLSS to channelize several long-term savings of retail investors into higher credit-rated debt instruments alongside availing appropriate tax benefits that can help in deepening the bond market.
At least 80 per cent of the funds collected under DLSS need to invest in debentures and bonds of companies as permitted as per the SEBI Mutual Fund Regulations. AMFI has been suggesting DLSS since 2021. Even in its Budget proposals for 2022-23 to the Finance Ministry, AMFI requested to allow mutual funds to introduce low-cost, lower-risk tax-exemption-linked DLSS on the lines of equity-linked saving schemes.
Click Here For the Latest Updates On Stock Market | Zee Business Live
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
From 19,000 Monthly SIP to Rs 13 cr Retirement Corpus: How many years will it take to reach this target; by what age can one achieve this goal
Power of Compounding: Rule of 114; how much return you will get on Rs 2 lakh investment in 2, 5 and 8 years? See calculations
'Diwali Offer' Stocks by Anil Singhvi: These 2 largecap, 1 smallcap scrips can give up to 70% return - Check targets
04:53 PM IST