Income Tax 80C Deduction Due Diligence: Last date for ELSS Investments for FY 2023-24 ends Today!

Income Tax 80C Deduction Due Diligence: Last Date for ELSS Investments for FY 2023-24 ends Today
Income Tax 80C Deduction - Income Tax - Income Tax Deduction - ELSS Investments - ELSS Investment Deadlines - Taxscan

According to the Income Tax Act, if you’re following the Old Tax Regime for the Financial Year 2023-24, your tax deduction expenditure for Section 80C Deduction should be completed by 31st March 2024.

However, due to 31st March 2024 falling on a Sunday, the new due date is now crucial.

Please be aware that due to the 5th Saturday, banks are operational on 30th March. Yet, banks will remain closed on Friday, 29th March, for Good Friday. Additionally, Stock Markets will be closed from 29th to 31st March, comprising Friday, Saturday, and Sunday.

Given this closure, Mutual Fund Houses will also be shut during these three days. To avail the ELSS Tax Benefits for the financial year 2023-24, investments must be made by 28th March 2024.

For the allocation of ELSS mutual fund purchases, transactions should occur when the Stock Market is active. If payments are made after 28th March, the amount will be debited from your account but Mutual Fund Units will be allocated on 1st April 2024. Consequently, this investment won’t be counted for Income Tax benefit under Section 80C.

As per Sebi regulations, investment funds should be credited to the mutual fund account by 3 PM on an active market day to secure the same day’s NAV for the acquired units. For instance, investing via UPI before 3:30 PM ensures eligibility for that day’s NAV. However, funds reaching after 3 PM will receive the NAV of the subsequent working day.

NJ Wealth Mutual Fund specifies that ELSS mutual fund investments must arrive by 2.15 PM on March 28, 2024, for Section 80C tax benefits.

Different mutual fund companies and banks have varied arrangements for fund reception.  Hence, before initiating an investment, consult your preferred mutual fund house to avoid last-minute issues. To ensure a smooth process, complete your ELSS mutual fund investment promptly.

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