Banks, LIC, tax department open on March 30, March 31; Know reason?

Banks, LIC, tax departments have declared March 31 as a working day to facilitate timely financial transactions and tax obligations.

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March 31 is generally the last working day of the current financial year. The day is significant as it is the last day of transactions for many institutions like banks, insuers, even the tax department. March 28 is Good Friday, which is a holiday and to avoid hardship to taxpayers and other individuals, the Reserve Bank of India, Insurance Regulatory Development Authority of India (IDRAI) and the Income Tax Department have made special arrangements. 

Reason behind opening banks on weekends? 

The Reserve Bank of India (RBI) had issued a notification on March 20, in which there was an order for the banks across the country that despite March 31, 2024 being a Sunday, all the banks will remain open and the banks will also have to advertise about this. Despite it being the last day of the financial year 2023-24, the decision to open the banks was taken so that the government does not face any problem in accounting for all its transactions.

The RBI has designated 33 agency banks to remain operational on this significant date. The list comprises of State Bank of India (SBI), Bank of Baroda (BOI), alongside 20 private sector banks, with HDFC Bank Ltd and ICICI Bank Ltd among them. 

LIC officies will also remain open

Due to the end of the financial year, LIC offices will also remain open on 31st March. However, this is not the main reason for this. Actually, by investing in LIC, people take advantage of tax exemption (exemption of Section 80C) under the old tax regime. In such a situation, so that taxpayers get a chance to complete their tax saving process before the end of the current financial year 2023-24, all the branches of the company will remain open on March 30 and 31.

Income Tax department open on Saturday, Sunday

The Central Board of Direct Taxes (CBDT) makes the policies of the Income Tax Department in the country. The Board has made it clear in one of its orders that in view of tax related work and closing, Income Tax offices will remain open on March 30 and 31. Income Tax Department officials will not get to celebrate the long weekend here.