Multiple choice

With the implementation of the Direct Tax Code, which of the following categories of income (earlier exempted) will lose tax benefits?

  1. Equity Mutual Funds (ELSS)
  2. Term deposits and NSC (National Savings certificates)
  3. Unit Linked Insurance Plans (ULIPs)
  4. Long term infrastructure bonds

  1. Only 1 and 3

  2. Only 1, 2 and 3

  3. Only 2, 3 and 4

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

DTC removes most of the categories of exempted income. Equity Mutual Funds (ELSS), Term deposits, NSC (National Savings certificates), Unit Linked Insurance Plans (ULIPs), Long term infrastructures bonds, house loan principal repayment, stamp duty and registration fees on purchase of house property will lose tax benefits.

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