Crucial deadlines and changes you can’t miss this December

December 2, 2023 Finance Talk Valli Sarvani No comments

As the end of the year is approaching, December brings with it a series of financial deadlines and changes that demand attention from mutual fund holders, equity investors, and individuals alike.

From mandatory nominations and locker agreement revisions to Aadhaar updates and tax-related obligations, here’s a closer look at what you need to prioritize this month.

Mutual fund holders and equity investors must act swiftly to provide nominations or opt out before December 31. Failure to comply by this deadline may result in restrictions on transactions such as redemptions, systematic withdrawal plans, systematic transfer plans (STP) and many more from January 1, 2024. Existing investors with folios created before January 1, 2024, need to submit nominee details or opt-out declarations to ensure seamless transactions.

For those with bank lockers, signing and submitting a revised locker agreement to the bank by December 31 is imperative. The Reserve Bank of India (RBI) extended the deadline for this process, emphasizing the need for individuals to update their agreements in a phased manner.

Aadhaar users have until December 14 to update their cards for free. After this date, updates will incur costs. Individuals who have not updated their Aadhaar for a decade should prioritize this task to avoid potential difficulties in availing government facilities in the future.

Salaried individuals and others with estimated tax liability exceeding ₹10,000 must pay the third advance tax instalment by December 15. Failure to do so may result in penal interest under section 234C of the Income Tax Act.

December 31, 2023, marks the final day to file revised or belated income tax returns. While a penalty of ₹5,000 applies, it is reduced to ₹1,000 for those with incomes below ₹5 lakh. Individuals who haven’t paid taxes for the financial year 2022-23 must settle the dues along with applicable interest.

Home loan borrowers await the Reserve Bank of India’s (RBI) decision on the repo rate in December. Any adjustment to the repo rate could impact interest rates on home loans and other loans linked to the repo rate.

HDFC Bank’s Regalia credit cardholders should take note of changes to lounge access within India from December 1. The program now considers credit card spends, with a spending criterion of ₹1 lakh or more in a calendar year for lounge access.

As the financial landscape undergoes these changes, it’s crucial to stay informed and meet these deadlines to ensure a smooth and compliant transition into the new year.

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