March 31 is the last day of the financial year, and it is also the last date for filing the income tax return for the last assessment year (FY 2014-15).
However, if you consider March 31 as the last date for making investment in tax-saving instruments for financial year 2015-16, then chances are that you may fail to achieve your goal.
The last-minute rush to invest in a PPF or in any other scheme may not help you get tax relief while filing your returns in July.
WHY YOUR LAST-MINUTE INVESTMENT MAY NOT YIELD ANY RESULT:
- The last-minute dash to invest in tax-saving instruments may fail because of technical reasons.
- To purchase a tax-saving investment, your cheque, which is issued a day or two before March 31, may take time to get clearance.
- In a scenario like this, your transaction will show up as part of the new financial year. As a result, you will not be able to show this as an investment proof for the financial year 2015-16.
- You may consider that your cheque was cleared before March 31 and list the investment-saving scheme in your return, but doing this may land you in trouble. The Income Tax department can take action against you under appropriate sections of law.
- Owing to last-minute rush and several requests piling up before banks and other agencies, computer networks often tend to slow down or may just stop working. Yet again, your investment will not be considered for financial year 2015-16.
- According to I-T rules, any investment to claim tax relief for a financial year will have to be made within that year, between April 1 and March 31.