The Ministry of Finance has given another month’s extension to tax payers to invest in tax savings instruments to avail benefits under section 80C, 80D and 80G.
With this, your clients can invest in ELSSs and ULIPs, buy health insurance policies and donate to charitable institutions till July 31, 2020 to save on taxes this financial year.
Earlier, the Ministry of Finance had given extension till June 30, 2020 to investors after AMFI and Life Insurance Council wrote to the ministry seeking a clarification from the Finance Ministry.
The Ministry said, “The date for making various investment/payment for claiming deduction under Chapter-VIA-B of IT Act which includes Section 80C (LIC, PPF, NSC etc.), 80D (Mediclaim), 80G (Donations), etc. has been extended to July 31, 2020. Hence the investment/payment can be made up to July 31 for claiming the deduction under these sections for FY 2019-20.”
Further, the government has extended under section 54 EC i.e. investment from sale of immovable proceeds can be invested in tax free bonds to defer LTCG tax till September 30. “The date for making investment/ construction/ purchase for claiming roll over benefit/ deduction in respect of capital gains under sections 54 to 54GB of the IT Act has also been further extended to 30th September, 2020. Therefore, the investment/ construction/ purchase made up to 30th September, 2020 shall be eligible for claiming deduction from capital gains,” said the government.
In addition, your clients can file their tax returns till November 30, 2020.
