Tuesday, 19 October 2021

Personal finance list to do in September

Personal finance list to do in September

September is crucial from a personal finance perspective, as there are five essential tasks to be completed this month.

In case you miss a deadline, you may end up paying the penalty and fine.

Here is some critical personal finance work to be completed before 30 September.

Link Aadhaar to EPF

The Employees' Provident Fund Organisation ('EPFO') has encouraged salaried individuals to link the Aadhaar to the employee provident fund account and Universal Account Number (UAN) for transparency and security. Pf settlement will be permitted only for those employees whose EPF/UAN and Aadhaar are linked and verified. The deadline is 1 September 2021.

Homi Mistry, a Partner with Deloitte India, said

"You should link the numbers immediately. Otherwise, you will face the following consequences: no credit to PF accounts and delayed remittance, which could result in loss of interest to a employee,"

File your income tax return

As of now, the last date to file income-tax (IT) returns for individuals is 30 September 2021, for the FY 2020-21 (the assessment year 2021-22). Due to the COVID-19 second wave, it got extended from 31 July 2021.

Due to glitches in the income-tax portal, chartered accountants expect the deadline to be pushed further by at least a month or till December.

But do not wait for that long, and try to file your income taxes soon. If you do not file your income tax before 30 September, you will have to pay interest on the tax due. A late-filing fee of Rs 5,000 shall be payable. However, late-filing costs will not exceed Rs 1,000 if the total income exceeds Rs 5 lakh in a financial year.

PAN-Aadhaar linking

The last date to linkage PAN cards with Aadhaar is 30 September 2021. After the deadline ends, all PAN cards not linked to Aadhaar would be declared inoperative. You cannot make any financial transaction if your PAN is not relating to your Aadhaar.

PAN card is compulsory to open a bank account, buying shares or mutual funds, and even making cash transactions of over 50,000. Financial institutions ask for PAN from their existing customers periodically for KYC purposes. If PAN is inactive, then the account could be impacting.

A fine of Rs 10,000 may apply as per Section 272B of the Income Tax Act if you failed to link the two documents by the deadline and your PAN becomes inoperative. It will be assuming that your PAN has not been furnishing as required by the law.

You can link them through the e-filing website by sending an SMS to 567678 or 56161 and typing UIDPAN or do it offline through PAN services centers of National Securities Depository Limited (NSDL) and UTIITSL.

List of personal finance list to do in September 1unsplash image

Read More: Change in the interest rate on deposit, fee wavier on loans by SBI

Update your KYC in Demat account

SEBI has announced 30 September 2021 as the last date for updating the KYC details in investors' Demat accounts. The date to update KYC got extended from 31 July 2021.

According to a SEBI circular dated 30 July 2021, an investor must update name, address, income range, mobile number, email id, PAN, etc., in the Demat account. If you do not update all this information in your Demat and trading account, your report will be deactivating. The Demat account will be activating only after updating the KYC.

Update mobile number in your bank accounts

To strengthen the security and safety of card transactions, the RBI has made the additional factor of authentication mandatory after 30 September.

From 1 October, for recurring payments through third-party merchant's websites, the bank would need to send you communication within five days in advance and at least 24 hours before the payment date to your mobile number. This reminder tells you about an upcoming scheduled payment. It would also give you the option to opt-out or pay the amount. If your bank has an inactive mobile number in its records, your auto-debit transaction will not get authenticated, and your bank account will not get debited.

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