The finance ministry has issued a notification to extend the tax benefit under section 80C of the Income Tax Act to investments made in equity linked saving schemes (ELSS).

Under the move, which will benefit the mutual fund sector and their clients, tax benefit would be available to investments made on or after April 1, 2005 in the units of a mutual fund or the Unit Trust if such units are issued under any plan formulated in accordance with the three schemes -- ELSS 1992, ELSS 1992 as modified in 1998 and ELSS 2005.

Earlier also, such investments were eligible for tax rebate under section 88 of the Income Tax Act. But section 88 was replaced by section 80C vide Finance Act 2005.

Accordingly, the SLSS 2005 has been notified vide SO No 1563(E) dated November 3 and subsequently amended vide notification No 259/2005 dated December 13, 2005.