New Direct Tax Code (D.T.C) Narrowing Tax Savings

New Direct tax code which will be implemented from 01.04.2012 narrowing the Tax savings. Mutual Funds (ELSS) and Unit linked insurance plans excluded from tax saving instruments and the first Rs. 1,00,000/- allows only government securities and P.F. Life Insurance, Tuition fee and Mediclaim included in other Rs. 50,000/- exemption. But the LIC should be pure LIC, means it should not include any ULIP or money back plans. It should be term  insurance and the annual premium should not be more than 5% of the sum assured. So most of the present LIC policies are excluded from exemption.Read more