RBI’s Big Decision: Banks to Remain Open on Holidays for Fiscal Year-End Transactions
In an unprecedented move that underscores the importance of the financial year-end, the Reserve Bank of India (RBI) has directed all banks to keep their branches open on March 31, 2024, even though it falls on a Sunday. This decision comes in light of managing transactions related to government receipts and payments effectively, ensuring all fiscal year-end activities are concluded smoothly.
A Glimpse into the Decision
The directive ensures that all agency banks involved in handling government transactions will cater to the public needs on the last day of the financial year, typically a peak period for banks due to the closing of annual accounts. This unusual step by RBI aims to alleviate any last-minute rush and inconvenience, providing ample opportunity for both individuals and businesses to complete their financial obligations and avail tax-saving benefits before the deadline.
Public Reaction and Benefits
The news has been met with a mix of surprise and relief among citizens, particularly those hustling to make the most of the tax-saving opportunities before March 31. Many have taken to social media to express their gratitude towards this foresighted decision by RBI, highlighting the ease it brings to completing financial transactions without the stress of beating the clock.
Last-Minute Tax Saving Tips Before March 31
With the financial year drawing to a close, it’s critical to explore tax-saving avenues that can help enhance your financial health while also reducing your taxable income. Here are a few options you should consider before the March 31 deadline:
1. Invest in Tax-Saver Fixed Deposits
One of the safest investment options, tax-saver FDs offer a deduction under Section 80C of the Income Tax Act, with returns generally higher than regular savings accounts. The only catch is the five-year lock-in period, but it’s a worthy investment for those looking for guaranteed returns alongside tax benefits.
2. Contribute to Public Provident Fund (PPF)
Another popular tax-saving option under Section 80C, PPF not only helps save tax but also offers attractive interest rates and returns that are fully exempt from tax. It has a 15-year lock-in period, making it an ideal investment for long-term financial planning.
3. Buy Health Insurance
Under Section 80D, premiums paid for health insurance for you and your family (including parents) can fetch you a deduction, thus reducing your taxable income. This serves the dual purpose of managing your tax liabilities and ensuring health coverage.
4. National Pension System (NPS)
Investing in NPS can yield additional deductions under Section 80CCD (1B) over and above the benefits available under Section 80C. It’s a great way to save tax while building a retirement corpus.
5. Make the Most of Deductions under Section 80C
Section 80C offers a wide range of investment options and expenditures that are eligible for deductions up to ₹1.5 lakh. This includes ELSS, children’s tuition fees, principal repayment of home loan, etc.
Last Minute 5 Best Tax Saving Options
80C – Equity MF – 12-14% returns, 3 yr lock in ₹1.5 lakh
80D – Take Mediclaim Self Parents up to ₹ 1 lakh
80CCD – NPS additional ₹50k go for equity option 75%
Pay Municipal Tax before March 31 to claim a deduction in case rent…
— CA Chirag Chauhan (@CAChirag) March 19, 2024
In laying out these directives and suggestions, the RBI and tax professionals are not only facilitating smoother financial year-end transactions but also encouraging citizens to become more tax-savvy, making informed decisions that benefit their financial futures. As March 31 approaches, remember these opportunities are not just about meeting deadlines, but about making smart choices for a more secure financial tomorrow.
Priyanka