Important financial deadlines to meet before 2023 ends

With the conclusion of the year in December, it becomes imperative to stay attuned to critical financial deadlines that can have far-reaching effects on your financial well-being. As we approach the end of the calendar, several pivotal dates loom on the horizon, encompassing aspects such as mutual fund nominations and the closing window for belated Income Tax Return (ITR) filings. Staying informed and adhering to these deadlines is essential to ensuring financial compliance and optimizing your financial standing as the year wraps up.

Last Date to File Belated or Revised ITR 

For those individuals who overlooked the initial deadline on July 31, 2023, to file their Income Tax Returns, there is a window of opportunity to submit belated ITRs until December 31, 2023, albeit with associated penalties. Referred to as a belated ITR, filing after the deadline incurs a late filing fee and penal interest on any outstanding taxes. It is imperative to be aware of these consequences and understand the process for filing a belated ITR, including the specifics of the applicable penalties.

Deadline for MF & Demat Nominations 

The Securities and Exchange Board of India (SEBI) has extended the deadline for mutual fund (MF) nominations to December 31, 2023, as opposed to the initial deadline of September 30, 2023. But, as per a circular issued on December 27, the regulator has extended the last date to June 30, 2024. This extension allows unitholders the opportunity to make choices regarding nominations for their MF units. Submission of preferences can be done through specified forms provided by fund houses, registrars, or transfer agents. Furthermore, investors can modify their nominations in online investment accounts or by reaching out to the relevant fund house. It is crucial to adhere to this deadline, as failure to comply may result in the freezing of folios. Such non-compliance could lead to restrictions on various mutual fund transactions, including redemptions, systematic withdrawal plans (SWP), switches, and systematic transfer plans (STP).

Bank Locker Agreement Deadline

The revised guidelines by the Reserve Bank of India (RBI) necessitate the completion of updated locker agreements by December 31, 2023. Individuals who have not yet done so may be required to sign and submit the revised locker agreement. These updated regulations explicitly state that only legitimate items are permissible for storage in the locker, explicitly prohibiting the keeping of illegal items such as hazardous substances. Under the new provisions, the bank is empowered to take ‘appropriate action’ against customers on any suspicion of non-compliance.

Furthermore, the regulations stipulate that the bank’s liability in cases of content loss will be ‘equivalent to one hundred times the prevailing annual rent of the safe deposit locker.’ Additionally, in the event of non-payment of locker rent for three consecutive years, the bank reserves the right to open the locker ‘following due procedure.’ Customers will be duly informed, allowing them the opportunity to retrieve their locker contents before any action is taken.

Inactivation of UPI IDs 

The National Payments Corporation of India (NPCI) has issued a directive requiring the deactivation of inactive UPI IDs that have not been utilized for a period exceeding one year, and this process is slated for completion by December 31, 2023. In adherence to this directive, popular payment applications such as Google Pay, Paytm, PhonePe, and various banks are obligated to deactivate UPI IDs and numbers that exhibit no activity for over a year.

This initiative aims to fortify the security of the UPI ecosystem and prevent any potential mishandling or erroneous fund transfers. Users are advised to ensure the activation of their UPI IDs before the specified date to avert the cancellation of dormant UPI IDs. Additionally, banks will issue notifications to users through email or messages before initiating the deactivation process for their UPI IDs.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.