I had invested Rs.50,000 in the National Pension System (NPS) on March 30, 2016, and when I checked my bank statement, I found out that the money was credited on April 4 only. Does my contribution qualify as a tax deduction in the financial year 2015-16?
-Purva Damani, Kolkata
Are you eligible to claim tax exemption if the money invested in NPS is credited
One can claim Tax exemption even if the money credited post 31st March
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The weekend towards end of March this year had its share of such complications. As you had made the payment on March 30, for income tax purposes, you will be eligible for the additional tax deduction of Rs. 50,000 for the financial year 2015-16. There is a time lag when you are investing in the NPS for the first time or even when you make subsequent contributions. It is for this same reason that the date when you make the investment counts.