Tax-Savings Investment Deadline Alert for FY 2023-24
With the financial year 2023-24 drawing to an imminent close, individuals eyeing tax-saving investments have a shrinking window of opportunity to make the most of their investment options. Highlighted days, March 30 and March 31, emerge as critical for those looking to invest in government schemes such as the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), and more, aiming to secure tax benefits for the current fiscal year.
Investing towards the fiscal year's end? Make note – the processing date of your transaction by the bank plays a pivotal role. Ankit Jain, partner at Ved Jain & Associates, clarifies, "Individuals can leverage tax benefits for FY 2023-24 by investing in schemes like PPF, SSY on March 30 and 31, 2024, contingent on the bank processing these transactions on the same dates."
Online transactions could be your best bet for ensuring your investments count for FY 2023-24, as highlighted by Neeraj Agarwala, partner at Nangia Andersen India. "For online investments in PPF, SSY, and other government schemes, the investment date aligns with the payment date, given successful transactions," Agarwala explains, underlining the efficiency of digital banking payment channels like IMPS, NEFT, and RTGS, which operate year-round.
In a supportive move, the Reserve Bank of India (RBI) has notified that all cheques related to government accounts will be cleared, and digital transaction channels, including NEFT, RTGS, and UPI, will function normally. "All Government transactions for the Financial Year 2023-24 must be accounted for within the same year. Agency banks are to keep their branches open for government transactions up to normal working hours on March 30 and March 31, 2024," states the RBI.
Echoing the RBI's commitment, Bandhan Bank announced that all its branches would remain open on March 31, 2024, facilitating transactions like income tax payments, submitting challans, or opening a tax-saving fixed deposit.
In sum, as the dusk settles on FY 2023-24, the time is now for taxpayers to act swiftly. Whether it's contributing to a PPF account or securing a tax-saving fixed deposit, March 30 and March 31 serve as critical junctures. Success hinges on quick action and the expedient processing of transactions by banks, ensuring investments fall within the ambit of FY 2023-24 for those coveted tax benefits.
Analyst comment
This news can be evaluated as positive as it provides a reminder and deadline for individuals to make tax-saving investments before the end of the financial year. The market is likely to see increased activity in government schemes such as PPF and SSY, especially on March 30 and 31. Online transactions and digital banking payment channels are recommended for efficient processing. The support from the Reserve Bank of India and Bandhan Bank further facilitates transactions. Overall, there may be a surge in investments as taxpayers strive to secure tax benefits before the end of FY 2023-24.