Your clients have 10 more days to invest in tax saving vehicles such as ELSS, ULIPs and health insurance policies to avail the benefits of 80C and 80D last financial year.
Earlier in March this year, the Ministry of Finance had given a three month extension to make various investments and payments for claiming deduction under section 80C (LIC, PPF, NSC etc.), 80D (Mediclaim) and 80G (Donations). This extension to save on FY19-20 taxes expires on June 30.
Therefore, if your clients have not made enough tax-saving investments for FY19-20 yet, you still have the opportunity to do so.
MFD Sadashiv Phene said that during the lockdown he compiled a list of clients who had not yet hit tax-saving investments limit for FY19-20 and started reaching out to them. While his existing clients have completed their tax planning well in advance, many of his new clients have not made enough investments to claim tax deductions. This is because these clients did tax planning only at the beginning of 2020 and paused their investments in March following the sharp correction in markets. Now, Phene has stepped up interaction with such clients to ensure that there is no last minute rush to complete tax-saving investments among his clients.
Husaini Kanchwala, Product Head - MF at NJ India Invest said that although June is the last month to invest in tax saving vehicles like ELSS this year, most of their existing clients had completed their tax-saving investments by March. Therefore, they are not expecting the usual rush to complete tax saving investments that they usually witness in March every year.
