Taxpayers seeking to make last-minute tax-saving investments for FY 2023-24 may find March 30 and March 31 crucial, being the final two days of the financial year. Missing this deadline would mean forfeiting the opportunity to invest in the current fiscal year.
Investing in government schemes like the Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY) on March 30 and March 31 could potentially qualify as investments for FY 2023-24. However, the crucial factor lies in when the bank processes the transaction. If the remittance is processed on the same day, the investment date will be considered these dates, allowing it to be counted in the financial year 2023-24.
According to tax experts, individuals can indeed avail tax benefits for FY 2023-24 by investing in government schemes on March 30 and March 31, 2024, provided the bank processes the transactions on these dates, whether offline or online.
Experts highlight that for online investments in PPF, SSY, and other government schemes, the investment date aligns with the payment date if the transactions are successful. However, if the transaction fails in transit despite being successful on the customer’s end, the investment date will correspond to when the bank receives the money.
Digital banking payment channels like IMPS, NEFT, and RTGS will remain operational during the year-end, ensuring accessibility for tax-saving investments in government schemes.
As per a notification by the Reserve Bank of India (RBI), all cheques related to government accounts will be cleared, and NEFT, RTGS, UPI transactions will function as usual. The RBI has instructed agency banks to keep designated branches open for over-the-counter transactions related to government transactions until normal working hours on March 30 and March 31, 2024. NEFT and RTGS transactions will continue up to 2400 hours on March 31, 2024.
All branches of banks dealing with government receipts and payments are requested to remain open for transactions on March 31, 2024, as per a directive from the Government of India. Accordingly, agency banks are advised to keep all their branches open on March 31, 2024, to account for all government transactions for FY 2023-24.
Bank confirms that all its branches will be open on March 31, 2024, allowing individuals to conduct various transactions related to government payments, tax-saving fixed deposits, PPF deposits, or other banking activities.
