Finance Related Deadlines
New Year Celebrations is all set to begin as the December 2023 month has begun. But some finance related deadlines also needs to be taken care of along with the celebrations. Here are few critical deadlines that an individual needs to keep in mind before the New Year begins.
Renewal of Locker Rent Agreement in Banks
- The deadlines for Locker Rent Agreement renewal which the customers’ needs to make with the banks comes to an end in December 2023. The Reserve Bank of India had in January 2023 extended the deadline for renewal of locker rent agreements up to December 31, 2023.
- The revised safe deposit locker rent agreement specifies that the lockers can be used only for the purposes such as storing jewellery and documents. The license granted to use the locker is only for the customers own use and is non-transferable.
- The lockers cannot be used for storing cash, currencies, arms, weapons, drugs, contraband or hazardous substances. The customers will be solely responsible for the misuse of the key provided by the bank or the password generated for the use of the locker.
- Banks will bear the cost of stamp papers while executing supplementary agreements for the exiting locker hirers only.
- a bank can refuse access to the locker if the rent due on the locker remains unpaid and a customer fails to provide proof of identity when demanded by the bank at the time of seeking access to the locker.
Change in inactive Unified Payment Interface UPI ID
- According to National Payments Corporation of India (NPCI) norms, inactive Unified Payment Interface (UPI) IDs and associated UPI numbers will be deactivated by December 31, 2023. This means users will have to activate their UPI ID otherwise all banks and third party apps providing the UPI services will deactivate or shut down after 31, December 2023.
- NPCI aims to prevent unintended money transfers to recipients if customers change their mobile numbers without disassociating their old numbers with the banking system.
- The UPI apps include Google Pay, Phone Pay, and Paytm. As per Telecom Regulatory Authority of India (TRAI) telecom companies can issue deactivated mobile numbers to a new subscriber after a period of 90 days. Thus the new number is still linked with the bank accounts and thus can lead to frauds and unauthorized access of third party to the bank accounts. To prevent this NPCI has decided to deactivate the inactive UPI IDs by 31st December,2023
Deadline for Mutual Fund, Demat Nomination
- Demat Accounts also known as Dematerialised accounts are accounts that helps investors hold their shares and securities in an electronic format. The existing Demat account holders and mutual fund unit holders have to provide nomination in their accounts before 31st December 2023. As per Securities and Exchange Board of India (SEBI) failing to provide nomination can freeze the Demat accounts. The move is aimed at helping investors to secure their assets and pass them on to their legal heirs
Demat account nominee: How to add a nominee to the Demat account
- Step 1: Log in to your Demat account.
- Step 2: Navigate to ‘My nominees’ under the profile segment, which will redirect to the nominee details page.
- Step 3: Choose ‘add nominee’ or ‘opt-out’.
- Step 4: Fill out the nominee details and upload an ID proof of the nominee.
- Step 5: Enter the nominee share in percentage that the investor would like to assign to the nominee after uploading the required documentation.
- Step 6: E-sign the document with Aadhaar OTP. The details of the nominee will be processed.
Free Update of Aadhaar Card
- Aadhaar Card Holders will be able to modify their Aadhaar Details for free till December 14, 2023 via myAadhaar Portal. The Unique Identification of India (UIDAI) had extended the deadline for updating the Aadhaar for free previously up to September 14, 2023. Now the deadline date is December 14, 2023.
- If you visit the Aadhaar Centre to get the update done, you will have to pay Rs 50 for the service.
- To use the free service, residents should visit the official Aadhaar website and log in with their Aadhaar number. A One Time Password (OTP) will be sent to their registered mobile number. Afterward, users can go to ‘Document Update’, and click on verify and upload documents to confirm their information. To access this service, proof of identity and address must be submitted on the official website.
Here’s a step-by-step guide on how to modify your Aadhaar details on the UIDAI website:
- Visit the official UIDAI website
- Log in and choose “Name/Gender/Date of Birth And Address Update”
- Click on “Update Aadhaar Online”
- Opt for ‘Address’ and click ‘Proceed to Update Aadhaar’
- Upload scanned documents and input necessary demographic details
- Pay the requisite fee (not applicable until December 14)
- A Service Request Number (SRN) will be generated for tracking
- You will receive an SMS after the internal quality check is complete
Deadline for Advance Tax Payment
- Individuals with a net Income Tax Liability of more than Rs 10,000 in a financial year are required to pay their third quarterly installments of Advance Tax by December 15, 2023. Non-payment of advance tax could result in the taxpayer being liable to interest under the Income Tax law. Hence, timely payments of advance tax should be made.
- Advance tax is income tax paid in advance during the fiscal year rather than at the end of the year. The tax laws specify when this must be paid throughout the year. This tax is paid in installments throughout the fiscal year. Advance tax is also known as “pay as you earn” tax.
- Penal interest under sections 234B and 234C is applicable for default in payment of advance tax A penal interest of 1% per month or part thereof is levied in each section. Section 234B is levied for delays in advance tax payment or shortfall in tax payment. Section 234C is applicable for nonpayment or short payment of individual advance tax instalments.
How to pay Advance Tax
- Step 1: Visit Income tax website https://www.incometax.gov.in/iec/foportal
- Step 2: Click on e-Pay tax, enter PAN, mobile number and click continue. Enter OTP received on Registered mobile number
- Step3: Click on Advance tax
- Step 4: Select assessment year, and select advance tax from drop down
- Step 5: Enter tax amount and continue. Select payment options and click continue
- Step 6: Click on Pay Now to make payment.
Finances are always a top priority for most of us and by following some strict disciplines, stress-free management of assets can be achieved. One of the best ways to manage assets is to keep track of the financial deadlines and take necessary actions before the due date. The start of the new year brings in many important financial events that cannot be ignored. Investors and taxpayers have to adhere to these due dates diligently to avoid any cases of fines or penalties or excess payment in the form of interest on amounts due.