Today, the last trading day before the market closure, is the final opportunity to invest in ELSS for tax Exemption
ELSS Tax Exemption: As the financial year draws to a close, investors are reminded that today marks the deadline for investing in Equity Linked Savings Schemes (ELSS) to avail of tax exemptions. Contrary to popular belief, the last date for ELSS investments is not March 31, but today, the final trading day before the market closes.
With Good Friday falling on the upcoming Friday, followed by a weekend, the financial markets will remain closed for three consecutive days. During this period, mutual fund houses will be unable to process any transactions.
It’s crucial to understand that while you can authorize the debit of funds from your bank account over the weekend, the actual transfer of mutual fund units to your account will not occur until the markets reopen on Monday.
To safeguard against any delays or last-minute hassles, it is strongly recommended to initiate your ELSS investments at least 2-3 working days before the end of the financial year. This ensures that the entire transaction, from payment to the transfer of mutual fund units, is completed well before March 31.
Simply making a payment on the final date will not suffice to secure tax benefits unless the mutual fund units are successfully transferred to your account. Therefore, proactive planning and timely action are key to maximizing tax savings through ELSS investments.
Key Points to Remember:
ELSS Deadline Today: Today, the last trading day before the market closure, is the final opportunity to invest in ELSS for tax benefits.
Market Closure: Due to the upcoming Good Friday and subsequent weekend, financial markets will be closed for three days, affecting transaction processing.
Processing Time: Mutual fund units will not be transferred to your account until markets reopen on Monday, despite debiting funds over the weekend.
Plan Ahead: Initiate ELSS investments at least 2-3 working days before March 31 to ensure timely completion of transactions and tax savings.
By understanding these timelines and taking proactive steps, investors can make the most of ELSS tax benefits and secure their financial goals for the year ahead. Don’t miss out on the opportunity—act now to invest in ELSS and save on taxes before today’s deadline.
To Know 5 Crucial Income Tax Tasks to Complete by March 31 CLICK HERE
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