Tax Saving Investments for FY 19-20 & FY 20-21

Govt has granted relief by extending the deadline for tax-saving investment under section 80C - ELSS, PPF, NSC etc. and NPS under section 80CCD 1(b), to June 30, 2020 for FY 19-20.

@Quicko I have few queries:-

  1. Can the investments for both FY 19-20 and FY 20-21 be done before June 30?

  2. How is the interest being calculated for FY 19-20 if it is technically invested in FY 20-21, before June 30?

  3. How will the taxation be calculated for investment done before June 30, 2020 but meant for FY19-20 and investment done before June 30 for FY 20-21? Whether it is up to the user to declare whether the said investment is done for FY 19-20 or FY 20-21?

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I am also curious to know clarification on the above points. Will somebody clarify with some clarity?

@rupeshmandal @RV3548,

  1. Yes, investment in tax saving instruments for both the Financial Years can be done before 30th June 2020. However, it is the taxpayer’s responsibility not to take benefit of the same investment twice i.e, in both the years.

  2. Interest Calculation will be as per the applicable provisions of the instrument. As per recent tweet from Finance Ministry relaxation for investment has been provided to PPF and SSA (Sukanya Samriddhi Account) account holders to invest till 30th June, however, the deposit will earn interest from the date of actual deposit and will be calculated as per the provisions of PPF/ SSA scheme.

  3. As per the recent tweet from the income tax department, they are making changes in ITR form for FY 2019-20 after the extension provided in tax saving investment so that taxpayer can claim and report the correct data while filing ITR.

Hope this clarifies your doubt. You can DM us at [email protected] for any further help. :slightly_smiling_face:


Can Exit a scrip I am running with loss and again enter around same price same day to reduce my profit? Can I use full margin from sell on purchasing same scrip same day? I don’t have extra 25% margin in my account to offset the cost.

80C Tax saving investment period for FY2020-2021 (AY2021-22)
Last date for investment in 80c is March 31st, 2021 or any notifications from Govt extending the period ?

Hey @brokenbull

If you are opting for the Old Tax Regime and still haven’t completely utilized the 80C limit of INR 1,50,000, you still have time till 31st March 2021 to exhaust the limit.

Quicko !
Thanks . Iam in old scheme only. Only 80c I do is ₹150,000 in SCSS . no other 80c investment. Guess I will wait till 30th for any extension from Govt or go to the bank & do SCSS on 30th /32st March.

if I dont make any 80c investments & i dont have any other deductions ----I opt in to new scheme----
will I get ₹50k discount from my fd/sb interest income in the new scheme as a senior citizen?
also if after deducting 50000 from fd interest income- i come under 500000 income 87A discount applies?


Hey @brokenbull

If you opt for a new tax regime then the deduction under section 80TTB for Bank/FD interest up to INR 50000 cannot be claimed. Rebate under section 87A can be availed under the new tax regime only if your total income is less than INR 5,00,000.

Hope this helps!

@Quicko THANKS
that was helpful.
i better stay in the old regime even though i have no 80c deductions or any other deductions.!
just atleast avail the paltry 80ttb 50k reduction in bank sb/fd interest income.
i may not go below 5 lakh just on this 50k discount,(to avail 87a discount)
hopefully i can show the loss /expenses/taxes paid in f&0/commodity/currency/intraday/stcg sectorwise and may escape tax,
can you give a quote on TAX AUDIT FEES?

@Quicko @rupeshmandal
Does maximum deposit limit 1.5 lakhs per fy is for single ssa account or 2 ssa accounts ? if i have 2 accounts for my 2 daughters can i deposit 1.5 lakhs in each ssa account ?

Hi @fno_Q, you will only be able to avail a maximum exemption of 1.5 lakh rupees for a financial year irrespective of number of accounts and the money deposited.

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