QnA: What does the Tax Savings Date extension mean?

By Nagpal Manoj @NagpalManoj  @OUTLOOKASIA CAPITAL

First remember these Simple guidelines

  • 1. FY ends in 31March20 as scheduled
  • 2. For purpose of tax savings, earlier u had complete investment in specific instruments till 31st March for it to be considered
  • 3. This date is extended till 30June

Everything else is same 

Does that mean Dividend recd till 30th Jun will be non-taxable in Individual’s hands and will be taxed?

Ans. No, Dividends only till 31st March are tax-free in ur hands. Pls refer to above guideliness for guiding principles 

I invest in the start of FY in tax savings. Now investment till June 30 (major chunk) will be treated in this FY. Does it mean I have to compensate that in next FY ?

Ans. No. It is self declaration. If u invest in April for next FY, u just need to say so 

Effect of EPF contribution / Home loan EMI (Int. + Principal) paid from 01/04/2020 to 30/06/2020. Will it combined with current year or eligible for next year?

Ans: Only voluntary savings for 80C in Apr-June20 may be used for FY1920. All else like EPF for FY21 

What is the last date of selling equity in cash in A.Y. 2020-21?

Ans. No change in this. It is as always March end 

Next FY for the same shall start from April itself? or from Jul 1 ?

Ans: Next FY starts from 1st April itself. No change in this 

If I invest in PPF online, then will I see an option there whether this investment is for FY19-20 or FY 20-21? I have already exhausted my limit for FY19-20

Ans: If u have exhausted ur limit, u cannot invest in Apr-June for FY1920. will be auto considered for FY2021 

Want to invest in tax saving ELSS in April for FY21. Possible right? Hv made full contribution to FY19-20. But want to make an early contribution for FY 20-21

Ans: Yes. Any investment from Apr-June20, u just need to self declare if it is for FY20 or FY21 

It means people who have invested 1.50 Lac during every opening of FY can not invest from Apr to June-2020?
By any mode, online or offline?

Ans. You can invest in Apr-June20 for FY21 tax savings. No restriction on this 

Suppose I invest first week of April for FY 2020-21. Is it possible. I invest generally first fortnight of FY for the full year ELSS and NPS???

Ans. Yes, u can. No restriction on this 

If someone invests after April 1, 2020, will it be considered for FY19-20 or FY20-21. Basically, how can i invest for FY20-21 in first week of April.

Ans. Yes u can invest in tax-savings in April20 for both FY20 & FY21. U will just need to ear-mark each 

Will our April to June 80C investments and NPS be eligible for tax deduction under old slab for FY 21 or will they be considered for FY 20 only?

Ans: Basis ur self-declaration while filing returns. 

Whether 5 lakhs limit for FY19-20(12 month) remains unchanged when duration is extended till 30th June 2020?

Ans: No change in tax slabs. No change in FY. FY also ends on 31March20. Pleass refer to guiding principles at beginning

So, if we can make investment in PPF until 30th June 2020 that will count for 2019-20 and PPF remains active? Asking because I was thinking of investing in last week of March to PPF. 

Ans: YES, that is correct 

The revenue/income will also be incorporated as the timeline is extended till 30th June, I.e for 15 months ????

Ans: No. Income only from Apr 2019 to March 2020 is to be considered for Income Tax fililng. No change in this. 

So if I invest 1.5 L in ELSS on April 1, I can claim it under 80-C for FY 20-21. But I can also claim it under FY 19-20. Will that not create confusion and some people may potentially claim exemption in both years.

Ans: Be ready for scrutiny if u mis-use 

Is this applicable to PPF AC also as this so far this year I was unable to contribute? Will my account be still active

Ans: YES, applicable to PPF also.

Will we be able to invest in ppf 1.5 lakhs during 30 June 20 period for FY1920 . As per PPF Act rules in a FY maximum 1.5lakh allowed, what will happen to FY 20-21 deposit in PPF ?

Ans: YES, this will be suitably modified by a notification 

If someone gross income is around 4.95 L till march & now due to extension at the end of june 2020 it will be around 6.5 L. So Their Income tax stab will change or not?

Ans: No change in FY. Pls refer to guiding principles at the beginning of the article

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