Due to the time lag between making a contribution and getting it credited in the respective fund accounts, the NPS subscribers, depositing contributions through a cheque, need to contribute by the 25th of the month, during which the contribution deadline ends. In contrast, in the case of online donation, it is better to do it by 27th or 28th, depending on the number of working days available within the period.
On the other hand, investors willing to invest in the Equity Linked Savings Scheme (ELSS) – to get tax benefits up to Rs 1.5 lakh u/s 80C of the Income Tax Act, were able to do so even on March 31 before 3 pm till last year, provided the previous day of the financial year was a working day.
As the NAV applicability for mutual fund (MF) investments has moved to realization-based NAV from February 1, 2021, even for investments below Rs 2 lakh, there will be some time lag between making an investment and the investment money getting credited in the respective ELSS fund accounts.
As a result, even if a cheque of Rs 1.5 lakh is deposited before 3 pm, the units will be allotted on the day the investment money is credited in the fund account before 3 pm or on the next day in case it’s realized after 3 pm. The allotment of the units will be made at the NAV of the date of issuance.