The Finance Minister of India, Smt. Nirmala Sitharaman has recently announced that the completion of tax-saving exercise has been extended from 31 March 2020 until June 30, 2020.

What does this mean? 

This means that tax-saving investments in Equity Linked Savings Schemes (ELSS), Provident Funds (EPF and PPF), National pension Scheme Contributions (NPS) can be made till 30th June 2020 for the FY 2019-20.

Also, settling tax disputes under Vivad se Vishwas sans interest, penalty, and filing of income tax returns (ITR). All of these actions had to be completed by March 31 earlier. But, now this can be paid without paying any interest and penalty till June 30, 2020. 

The government has also extended the deadlines for filing an income tax return (ITR) for FY 2018-19 to June 30, 2020, from the present one of March 31, 2020. For FY 2018-19, delayed payment for tax payments has been reduced from 12 percent to 9 percent. No extension, for delayed TDS deposit has been reduced from 18 percent to 9 percent.

What it doesn’t mean?

This announcement doesn’t mean that the financial year has extended, the financial year 2019-20 has still ended on 31^st March 2020. This also does not mean that all your tax-saving investments after 31^st March will be counted for FY 2019-20. The investor is the one to decide in which financial year he wants to include the investment.

We tried here to put your worries at ease and tell you about this extension in the simplest words we can. 

Happy Investing!

(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).