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Save taxes while you can! You still have till June 30 to invest
Due to the country-wide lockdown, the government has extended compliance related deadlines, which include the deadline for tax saving investment.
Investors looking to make tax-saving investments are confused over extension of the March 31 deadline.
Due to the country-wide lockdown, the government has extended compliance related deadlines, which include the deadline for tax saving investment.
The source of confusion:
Notably, amendments to Indian Stamp Act were to become effective from April 1 this year but the government notification extended the deadline to July 1. Meanwhile, a fake news about the extension of the financial year circulated on social media, following which the Ministry of Finance issued a statement. “There is a fake news circulating in some section of media that the Financial Year has been extended. A notification issued by the Government of India on 30th March 2020 with respect to some other amendments done in the Indian Stamp Act is being misquoted. There is no extension of the Financial Year.”
This created confusion among investors looking to make tax-saving investments for the financial year 2019-20.
Can you make tax-saving investments after March 31?
Extending the deadline for investments does not require the government to extend the entire financial year by a quarter. So far specific deadlines have been extended which have been duly notified. “The tax relief package announced last week extends the due date (31 March) for making tax-saving investments. However, the CBDT is yet to issue a notification specifying the amendments to the Income Tax Act.
It means, unlike previous years, March 31 is not the last day for making your tax-saving investments. “The time for making tax-saving investments for FY 2019-20 expires on March 31, 2020. The government has granted relief by extending the deadline to June 30, 2020. If you have any shortfall to match then you can make the investment by June 30 this year.
Source:Businesstoday
