The month of September is important from a personal finance view as there are some important tasks to be completed, missing on which would result in penalties.
Here are the key PF tasks one must complete this month:
ITR filing deadline
Income Tax Return (ITR) filing is the process by which a taxpayer can report total income earned in a financial year. He/she can claim the refund of the excess tax paid/deducted during the financial year by filing it for that year. The process of filing an I-T return online is known as e-filing.
For the financial year 2020-21 (the assessment year 2021-2022), the last day to file ITR is September 30, 2021.
The deadline for linking of Permanent Account Number (PAN) with Aadhaar has been extended several times and the current deadline ends on September 30, 2021.
According to the Central Board of Direct Taxes (CBDT), if the users fail to link the two by the stipulated deadline, their PAN cards may become 'inoperative'. As a result, individuals will not be able to conduct financial transactions. Users should note that while income tax returns can be filed even without linking the two, the department does not process the returns until PAN and Aadhaar are linked.
An individual may also be liable to pay a late fee of up to Rs 1,000 in case of non-linking of their PAN with Aadhaar.
Updating KYC in demat account
The demat and trading accounts lacking an updated KYC (know-your-customer) will be deactivated if not done by September 30, 2021, according to the circulars by Central Depository Services Limited (CDSL) and National Securities Depository Limited (NSDL).
To avoid deactivation of their accounts, investors have been asked to provide their name, address, Permanent Account Number (PAN), valid mobile number, valid email ID, and income range.