News

Deadline extension: A golden opportunity for PPF, SSY investors, but not so glittering for tax savers

Deadline extension: A golden opportunity for PPF, SSY investors, but not so glittering for tax savers

Tax saving is one of the incentives that encourages people to go for long-term investments. Although one shouldn’t invest only to save tax but also to meet his/her financial goals, but taxes saved through tax-saving investments provide instant return as per the tax bracket in which the investor falls.
For example, a person in the highest tax bracket may get 30 per cent return (excluding cess and surcharge, if any) in the form of tax saving / refund in the same year, in which the investments are made. Similarly, a person in the 20 per cent tax bracket may get an instant return of 20 per cent (excluding cess), which is a big incentive to motivate a taxpayer to invest.

However, many investors failed to make their last-minute tax-saving investments for the Financial Year (FY) 2019-20, as the year ended amid the nationwide lockdown that was imposed to contain the spread of highly contagious Novel Coronavirus COVID-19.

Top