Tax Saving Investment: Will Last-minute Investment in PPF and SSY on 30th and 31st March qualify for Tax Benefits in FY 2023-24?

Tax Saving Investment: Individuals seeking to make tax-saving investments for FY 2023-24 may be looking forward to March 30 and March 31, which are the last two dates of the financial year. If an individual fails to do so, there will be no opportunity to invest in the current financial year.

Will investments in government programs such as the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), and others on March 30 and 31 be counted as investments in the financial year 2023-24?

According to experts, the most important factor in this case is when the respective banks process the transaction and on what date. For example, if you send money to the bank on March 30 or March 31 and it is processed on the same day, the investment date will be on these dates and will be counted in the financial year 2023-24.

The expert further said, “On March 30 and March 31, 2024, individuals can invest in various government schemes such as PPF, SSY, and others and claim tax benefits for the financial year 2023-24. However, this is only possible if the bank processes both offline and online transactions on these dates.”

For example: Interbank cheques are typically processed the following working day, so if a person deposits a cheque from another bank on March 31, 2024, it will be processed on or after April 2, 2024. If an individual invests in government programs using a bank’s online channels, the transaction is handled quickly, allowing individuals to receive tax benefits as of the date of investment.

“However, if the transaction succeeded on the customer’s end but failed in transit i.e. the bank did not receive the money, but money was debited from your account, then the investment date will be the date on which the bank received the money,” the expert said.

All digital banking payment channels, including IMPS, NEFT, and RTGS, will be operational till the end of the year.

How can you save money on taxes by investing in government schemes on March 30 and 31 for the financial year 2023-24 at a bank?

According to a notification from the Reserve Bank of India (RBI), all cheques relating to government accounts will be cleared, and NEFT, RTGS, and UPI transactions will continue as usual.

“All government transactions carried out by agency banks during the financial year 2023-24 must be accounted for within that same financial year. All Agency banks shall keep their authorized branches open for over-the-counter government transactions until normal business hours on March 30 and 31, 2024. Transactions through the National Electronic Funds Transfer (NEFT) and Real Time Gross Settlement (RTGS) Systems will continue until 2400 hours on March 31, 2024,” according to a notification issued by the RBI on March 21, 2024.

Are all bank branches open on March 30 and 31, 2024?

“The Government of India has requested that all branches of banks dealing with Government revenues and payments remain open for transactions on March 31, 2024 (Sunday) in order to account for all Government receipts and payments in the financial year 2023-24. Accordingly, Agency Banks are recommended to maintain all of their branches dealing with government business open on March 31, 2024 (Sunday),” stated the Reserve Bank of India in a notification dated March 20, 2024.