As September rolls in, here are six financial deadlines that individuals must meet if relevant and not done already. Taxpayers and investors should note these dates to avoid complications related to demat accounts or mutual fund folios, etc., later.
Here are the six significant financial deadlines to remember this month.
If you have small saving schemes like the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), or National Savings Certificate, ensure that you've submitted your Aadhaar number to India Post for updating KYC details. A six-month provided earlier will expire on September 30, 2023. Failure to do so will result in the freezing of your account from October 1, 2023. New account holders must link their Aadhaar within six months of opening an account.
In this regard, updating Aadhar is also essential. The Unique Identification Authority of India (UIDAI) has extended till September 14 to update Aadhaar information free of charge. The authority had extended the deadline that ended on June 14 to September. The government has clarified that users should update their 10-year-old Aadhaar information.
The Reserve Bank of India's four-month window for depositing or exchanging Rs 2,000 notes ends on September 30. After this date, Rs 2,000 notes will have no value in the market, so be sure to deposit them in your bank accounts before September 30.
Mutual fund investors must provide nominees for their folios or opt out of nomination before September 30, 2023, if not done already. Failure to do so will result in restrictions on transactions like redemptions/systematic withdrawal plan (SWP) and switch or systematic transfer plan (STP) from October 1, 2023. Also, the Securities and Exchange Board of India (Sebi), the stock market regulator, has extended the deadline for demat account holders to give nominees or opt out of nominations till September 30.
Senior citizens seeking higher interest rates should take advantage of SBI's We Care fixed deposit scheme, which offers an attractive interest rate of 7.50 per cent. The deadline for these deposits is September 30.
IDBI Amrit Mahotsav FD Scheme:
IDBI Bank's Amrit Mahotsav FD scheme has a 375-day and 400-day tenure. General depositors, NRE, and NRO, can enjoy an interest rate of 7.10 per cent on the 375-day deposit, while senior citizens receive 7.60 per cent. For the 444-day deposit, general citizens can earn 7.15 per cent, while senior citizens get 7.65 per cent. The deadline for opening accounts under this scheme will also end on September 30, 2023.
The deadline to pay the second instalment of advance tax for the financial year 2022-23 is September 15, 2023. A taxpayer has to pay 45 per cent of the total tax liability by this date. Advance tax is paid in advance towards income tax instead of paying in a lump sum at the end of the year. As per section 208 of the Income Tax Act 1961, "every person whose estimated tax liability for the year is Rs. 10,000 or more, shall pay his tax in advance, in the form of "advance tax".
