Last Chance for Key NFOs
Several New Fund Offers (NFOs) are closing their subscription windows this week, presenting a final opportunity for investors to get in at the initial offer price. An NFO is when an asset management company launches a new mutual fund to raise capital.
Notable funds closing soon include the DSP BSE Insurance ETF, which shutters on September 28, and a trio of funds closing on September 29: the Invesco India Nifty Chemical Index Fund, the Invesco India Nifty India Defence Index Fund, and the Kotak Nifty Capital Markets Index Fund. The SBI Nifty200 Value 30 ETF FOF is another one to watch, with its offer period ending on September 30. These funds span various categories, from thematic equity index funds focused on specific sectors like chemicals and defence to exchange-traded funds (ETFs). Before investing, it's crucial to review the scheme's objectives, risk factors, and your own financial goals. While some NFOs like the ICICI Prudential Contra Fund are just opening, the window of opportunity for others is about to close.
The September 30 Tax Deadline
For many businesses and professionals, September 30 is a crucial tax deadline. It marks the last day to file the tax audit report for the Assessment Year (AY) 2026-27, which corresponds to the financial year 2025-26. While professional bodies have requested an extension, the government has not officially announced one, making it vital to adhere to the current date. Missing this deadline can attract a penalty under Section 271B, calculated as 0.5% of turnover or gross receipts, with a maximum penalty of ₹1,50,000. It's important not to confuse this with the income tax return (ITR) filing deadline, which for audited cases is October 31. Additionally, September 30 is also the due date for depositing Tax Deducted at Source (TDS) for certain specified transactions made in August, such as the purchase of immovable property. Taxpayers should ensure they complete all necessary reconciliations with their Form 26AS and Annual Information Statement (AIS) to ensure a smooth compliance process.
Small Savings Scheme Rate Review
The end of September also brings an important update for savers. The government is set to announce the interest rates for small savings schemes for the October-December 2026 quarter on September 30. This quarterly review affects popular instruments like the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), Senior Citizens' Savings Scheme (SCSS), and National Savings Certificate (NSC). Investors will be watching closely to see if rates are revised or kept unchanged, as they have been for several previous quarters. Market indicators, such as the rise in government bond yields since the last review, suggest a potential for a modest hike, but the final decision rests with the government. For the current quarter (July-September 2026), the SSY and SCSS offered the highest rate at 8.2%, while PPF stood at 7.1%. This announcement is key for planning future investments in these secure, government-backed schemes.
A Note on Minimum Deposits
While the deadline for making minimum deposits into schemes like PPF, SSY, and the National Pension System (NPS) to keep them active is March 31 of each financial year, the end of the quarter is a good time for a financial health check. To keep a PPF account active, a minimum deposit of ₹500 is required annually. For an SSY account, it's ₹250, and for a Tier-I NPS account, it's typically ₹1,000. Failing to make these minimum contributions can lead to the account becoming inactive or 'discontinued'. While these accounts can be revived by paying a penalty along with the missed deposits, it's an avoidable hassle. Using the end of a quarter to review your contributions ensures you are on track and avoids a last-minute rush before the financial year ends.
