5 Money Rule Changes: Earlier the government had extended the date on the Income Tax Return (ITR) filing for FY20-FY21 for individual taxpayers.
As we head into the month of September 2021, there are a few changes that are taking place. These changes primarily revolve around monetary concerns and the rules regarding them. There are several changes that were announced earlier in August as well, but for the immediate future, there are five things you need to keep in mind for this month. Amongst them are deadlines, penalties and rules to be adhered to for a range of issues such as Income Tax Return (ITR), Aadhaar-PAN linking, Aadhaar-PF linking and more. Having said that, here are the top five money-based tasks you need to complete by the end of this month.
Income Tax Return filing Extension
The government had extended the date on the ITR filing for FY20-FY21 for individual taxpayers. This came after taxpayers took to social media to express their concerns regarding the glitches they faced on the official Income Tax portal for e-filings forms that come under the ambit of the Income-Tax Act, 1961. Following this, the government had extended the deadline to September 30. If you fail to file your ITR by the given deadline, then you will have to pay a fine of Rs 5,000 as a late fee. However, if your annual salary for a given financial year is under Rs 5 lakh, then the late fees will not exceed Rs 1,000.
Aadhaar-PAN linking Deadline
The government has issued a deadline of September 30, 2021, as the last date to link your Aadhaar to your PAN card. This comes in light of the Covid-19 pandemic, which forced the Central Board of Direct Taxes (CBDT) to relax several deadlines. According to Section 139AA of the Income Tax Act, every individual with PAN as of July 1, 2017, who is eligible to obtain Aadhaar, must link PAN with Aadhaar. If you fail to do so before the deadline, your PAN card will become invalid. This is a big issue as PAN cards are essential in opening bank accounts and for availing of other financial services.
Aadhaar-PF linking Deadline
From September 1, employees and employers will only be able to make contributions to the employee’s provident fund (PF) if the universal account number (UAN) is linked with the Aadhaar card. This comes after the Employees’ Provident Fund Organisation (EPFO) amended Section 142 of the Code of Social Security, 2020. This made the linking mandatory for availing the full range of services, seeking benefits, receiving payments amongst other things.
KYC Details for Demat Accounts
Citizens who have Demat or trading accounts will need to fill out their know-your-customer (KYC) details by September 30. If they fail to adhere to the guidelines and the given deadline, then the Demat account will be deactivated thereafter.
Auto-Debit Transactions Deadline
For this rule, people will have the entire month of September to comply as it only comes into effect from October. Essentially, starting from October 1, any auto-debit payments that are initiated from your bank account will need a two-factor authentication process to be completed. As such, it is crucial that you update your registered mobile number in the bank’s records. The auto-debit mandate is usually only given for mutual fund SIPs, but in this case, the Reserve Bank of India (RBI) has made it a mandatory process for everyone starting next month. As per the new change, the bank will be sending its customers a communication at least five days in advance. It will also issue a communication 24 hours ahead of the payment date to the aforementioned registered mobile number.
