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With just 2 days left in this financial year, investors are left with very limited time to make investments in tax saving instruments.
According to a recent circular by AMFI, net banking (including RTGS and NEFT) and UPI are the only options available with investors to get the same day or the next day NAV. Payments made through cheque takes up to three days to reach the fund house, as per the circular. This implies that your clients now only have the UPI and net banking options to make ELSS investment this financial year (FY 2021-2022).
The cut off time for each payment option also differs. To get the same day NAV, the cut-off time for UPI and net banking (only some banks) is 2.45 pm. In case of RTGS, the cut-off time is 2.30 pm and for NEFT it is 1.00 pm. However, payment through net banking can take longer in case of some banks. If your client’s bank name is not mentioned in the chart below, then it’s better to avoid net banking.
Payment modes and day of unit allotment (lumpsum):
