Income tax deadline to seek tax exemption via ELSS was yesterday: All you need to know

• March 29, 2024
• CA Chandan Agarwal's Office

Income tax deadline to seek tax exemption via ELSS was yesterday: All you need to know

The last date to invest in tax saving instruments is March 31 but the last day to invest in Equity Linked Savings Instruments (ELSS) was yesterday as it is the last date when the markets are open. Financial markets will be closed on Friday due to Good Friday following which the markets are closed on the weekend. Owing to this financial markets are closed for three days and mutual fund houses will not be able to process the transactions during these days.

Banks are also working this Saturday (March 30) on account of it being the fifth Saturday of the month but banks are closed on Friday (March 29) for Good Friday. As stock markets are closed, therefore, mutual fund houses are also scheduled to be closed on these three days.

You can only debit money from your bank account but no mutual fund units will be transferred to your account before Monday. Hence it is not possible to invest in ELSS on the Good Friday weekend.

However, you can invest in any non-equity financial instrument such as NPS, PPF or insurance, since online transactions can take place on the weekend as well.

According to the Securities and Exchange Board of India (Sebi)’s guidelines, money should be credited to the mutual fund bank house for an investment to be considered done.

Source: https://www.hindustantimes.com/business/income-tax-deadline-to-seek-tax-exemption-via-elss-today-all-you-need-to-know-101711618593193.html