As we enter the month of July, there are several important financial updates and deadlines that you need to be aware of. From filing your income tax returns to linking your PAN with Aadhaar and understanding the implications of the HDFC Bank and HDFC amalgamation, let’s delve into these topics and ensure you stay informed.
File your tax returns now
The due date for filing income tax returns for the financial year 2022-23 is approaching on July 31. To avoid penalties, it is advisable to start the process early rather than waiting until the last minute. Remember, if you miss the due date but complete the process by December 31, you may have to pay a penalty of Rs 5,000. However, if your income is less than Rs 5 lakh, the late filing fee will be restricted to Rs 1,000.
Apply for higher pension on actual salary by July 11
The Employees’ Provident Fund Organisation (EPFO) has extended the deadline until July 11 for employees to choose the higher pension option. This facility is available to EPFO and EPS members who were part of the organization before September 1, 2014. By directing 8.33 percent of your actual salary towards the pension pool, you can potentially receive a higher pension post-retirement. It is crucial to complete the application process through the EPFO’s member portal by June 26.
Consequences for not linking PAN with Aadhaar
The deadline to link your PAN with Aadhaar is June 30, 2023. Failure to do so will render your PAN inoperative from July 1. The repercussions include the non-issuance of tax refunds and the absence of interest on excess taxes paid. Additionally, tax deducted at source (TDS) and tax collected at source (TCS) will attract higher rates. Remember, the linkage is also necessary for investing in mutual funds and stocks as per SEBI rules. Furthermore, financial and service requests will not be processed for PANs that are not linked with Aadhaar.
HDFC Bank and HDFC merger effective from July 1
The merger between HDFC Bank, the largest private sector bank, and Housing Development Finance Corporation (HDFC), a prominent mortgage lender, has come into effect on July 1. Account holders and borrowers should stay informed about changes in home loan rates, deposit rates, and operational adjustments resulting from the merger. It is also essential to determine whether existing HDFC Ltd branches in your area will be converted to full-service bank branches or closed.
Staying updated on financial matters is crucial to avoid penalties, maximize benefits, and make informed decisions. Remember to file your income tax returns before the deadline, link your PAN with Aadhaar to avoid inconveniences, and keep track of changes resulting from the HDFC Bank and HDFC amalgamation. By staying proactive and well-informed, you can navigate these financial updates smoothly and ensure a secure financial future.