Tax Savings Deadline: The deadline for your tax investment may be before March 31: Here’s why
Yes, you have five days left to make your tax investments. However, keep in mind that not all are working days. There are public holidays from March 27 to March 29 due to the fourth second Saturday, Sunday and public holiday. Additionally, in some areas such as Patna, banks are also closed on March 30, according to the Reserve Bank of India website.
This is particularly important when it comes to making tax-saving investments. If you make an investment by check and the check is not cashed on time, you might miss the opportunity to complete the tax investment process on time, which is before March 31st.
In the event of new investments made by check either in postal savings banks (which currently offer higher interest rates compared to tax-saving bank FDs) or in linked savings mutual funds to equities (ELSS), the realization of funds can take up to three days. Thus, it is advisable to invest via other methods such as Net-banking, UPI etc. as much as possible.
Ashwin Karmarkar, Partner of Vintage Finvest, says: “People wishing to invest in ELSS by check now may not get the investment date before March 31, 2021. Therefore, it is advisable to use other methods of investment such as online banking, UPI, wire transfers, etc. ”
From February 1, 2021, the net asset value that will be applicable to your investment will be given on the day the funds are credited to the FCP’s bank account. The realization of funds is applicable to all operations of purchase or purchase of operations by inter-switching between different schemes.
DSP Mutual Fund on its website has shared the investment schedule in its ELSS mutual fund system. The investment via Net banking can be made until March 31 at 12 noon. However, this facility is only available for HDFC Bank, ICICI Bank, SBI, Axis Bank, IDBI Bank, Kotak Bank, Yes Bank, IDFC Bank and IndusInd Bank. For all other banks, the Net-banking transfer must be made before March 28, 2021, in accordance with the DSP MF notice.
In accordance with the notice, in case of money transfer via UPI, these transfers can be made before noon on March 31, 2021. Bank transfers can be made until noon on March 31. In case the transfers are made via eNACH / OTH, then make sure that you have done it before 3:00 p.m. on March 26, 2021.
(Screenshot from DSP Mutual Fund website)
People who are short of funds have the opportunity to make tax-saving investments by transferring funds from their existing investments to ELSS funds. However, in the opinion of the DSP, it appears that such last minute changes are now an option available only for debt mutual funds and cannot be made for equity funds. In fact, the conversion of debt mutual funds can be carried out until March 30, 2021. For mutual funds in shares, the last conversion date for this purpose was March 25, 2021, and for mutual funds. fund of funds, it was March 23. , 2021. This is due to the T + 3 rule for the allocation of units when making funds.
Keep in mind that the last successful date for a fund transfer to an ELSS may be different for different mutual fund companies. It is therefore advisable to check with your mutual.