While March 31 is generally the last day for making tax-saving investments, it might not be the same this year for many taxpayers. This is due to holidays and weekend in the days leading to March 31. You should complete tax-saving investments as soon as possible, if you haven’t done yet. More so because the March 31 falls on a Sunday this year.
Before March 31, there is also a bank and stock market holiday on March 29, 2024. Banks will be open on March 30, 2024, Saturday, as it is the fifth working Saturday. However, stock market and mutual fund houses will remain closed on this day.
In view of the above conditions, the last day for completing tax-saving activities this year is expected to be March 28, 2024. However, this date is also dependent on your chosen tax-saving instrument and the mode of investment.
For instance, if you are planning to invest in ELSS mutual funds and claim benefit under Section 80C, you must deposit the money into the concerned mutual fund before March 31, 2024. The realization of funds in ELSS may take up to three days. The date of allotment of units of an ELSS or the NAV date should be on or before March 31.
Also Read : CBDT Adds New Feature in Annual Information Statement (AIS). How Will it Help Taxpayers?
What should taxpayers ensure
To enjoy the benefit of tax-saving investments, taxpayers have to ensure that their tax-saving investment reach the concerned institution on or before March 31, 2024.
Recently, RBI said that agency banks handling government works will remain open on March 31 (Sunday). The RBI didn’t say whether these agency banks will be open for public transactions or not. Even if public transactions are allowed in these agency banks on Sunday, it is possible that your bank may not be in the list of agency banks.
Furthermore, conducting any bank transaction, even if the bank is open on the last day of the financial year, carries the risk of potential delays beyond Sunday midnight due to server downtime or technical issues.
Hence, completing your financial transactions for tax-saving before March 31 is advisable to all taxpayers. (Also Read: 5 Personal Finance Tasks To Do Before March 31st)
Investment via Cheque
If investing via cheque, ensure that the money is debited on or before March 29, 2024. There is a bank holiday on March 25 due to Holi and banks are closed on March 23, the fourth Saturday of the month. This means, a cheque issued on March 22 is unlikely to be cleared before March 26 or March 27. In case the cheque is not cleared in time, you might miss the opportunity to make tax-saving investment before March 31.
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