Tax Savings for FY 20-21

[Ddude]

Based on recent announcement, any ELSS investment before Jun 30th 2020 can be counted towards section 80c for FY 19-20. However I already made investments for FY 19-20. In that case, if I make an ELSS investments on 1st Apr, can I count the same towards FY 20-21.

Please clarify

[TradingWizard]

One more question related to the above.

I invest in PPF every year (BTW April 1 to 5th).
Should I Invest on April 1st or wait for July 1st 2020 ?
Is there any penalty If I invest now after having already invested 1.5L on April 2019 ?
Thanks.

[rupeshmandal]

Also, how will the tax loss harvesting be considered? By 31st March or 30th June? @Quicko

[rupeshmandal]

@Quicko @siva @Bhuvan @nithin

1. Is today the last date for tax harvesting for FY 19-20, or it would be June 30 since we are now allowed to make tax-saving investments up to June 30 for FY 19-20.

2. Also, for FY 20-21, tax-saving investments would be considered from April 1 or July 1 onwards?

[Quicko]

@Ddude

Based on recent announcement, any ELSS investment before Jun 30th 2020 can be counted towards section 80c for FY 19-20. However I already made investments for FY 19-20. In that case, if I make an ELSS investments on 1st Apr, can I count the same towards FY 20-21.

Please clarify

@TradingWizard

One more question related to the above.

I invest in PPF every year (BTW April 1 to 5th).
Should I Invest on April 1st or wait for July 1st 2020 ?
Is there any penalty If I invest now after having already invested 1.5L on April 2019 ?
Thanks.

@Ddude @TradingWizard

As per the recent announcement by FM, the due date for making any last minute tax-saving investments for FY 2019-20 is extended from 31st March to 30th June 2020. Which means, a taxpayer can claim a benefit of investment made in any 80C scheme between 01/04/2020 to 30/06/2020 while filing ITR for FY 2019-20.

However, this does not mean that any investment made between 01/04/2020 to 30/06/2020 will become part of FY 2019-20 only. So if you invest in tax savings scheme between 01/04/2020 to 30/06/2020 for FY 2020-21 it should be allowed in FY 2020-21. However, more clarification from CBDT is expected on the same. And we will update you on the same.

[Quicko]

@rupeshmandal

@Quicko @siva @Bhuvanesh @nithin

1. Is today the last date for tax harvesting for FY 19-20, or it would be June 30 since we are now allowed to make tax-saving investments up to June 30 for FY 19-20.
2. Also, for FY 20-21, tax-saving investments would be considered from April 1 or July 1 onwards?

@rupeshmandal

1. As per the recent tweet from the CBIC, there is no extension given for the end of the financial year. Hence FY 2019-20 will end on 31/03/2020. And tax-loss harvesting is a concept attached to the end of the financial year. So no change in it.

@Quicko

As per the recent announcement by FM, the due date for making any last minute tax-saving investments for FY 2019-20 is extended from 31st March to 30th June 2020. Which means, a taxpayer can claim a benefit of investment made in any 80C scheme between 01/04/2020 to 30/06/2020 while filing ITR for FY 2019-20.

However, this does not mean that any investment made between 01/04/2020 to 30/06/2020 will become part of FY 2019-20 only. So if you invest in tax savings scheme between 01/04/2020 to 30/06/2020 for FY 2020-21 it should be allowed in FY 2020-21. However, more clarification from CBDT is expected on the same. And we will update you on the same.

Hope this helps.

[Ddude]

@rupeshmandal

Just checked few reputed websites and mostly everyone seem to suggest the same. Tax savings Investments made during Apr - Jun 2020 can be claimed in either FY 20 or FY 21 but not both.

[rupeshmandal]

Thanks.