From mutual fund nominations, belated ITR and fixed deposit extensions, here are some important financial deadlines to remember in December
As the year draws to a close in December, it's important to be aware of key financial deadlines that could impact your finances. Several financial deadlines from mutual fund nominations to deadlines for belated Income Tax Return (ITR) filings are approaching.
Deadline for MF & Demat Nominations
Securities and Exchanges Board of India extended the mutual fund nomination deadline to December 31, 2023, from September 30, 2023, enabling unitholders to opt for or opt out of nominations in their MF units. Unitholders can submit their choices using specified forms through fund houses, registrars, or transfer agents. Additionally, nominations can be modified in investment accounts held through online platforms or by contacting the respective fund house.
Non-compliance could result in freezing your folios causing restrictions on mutual fund transactions like redemptions and systematic withdrawal plans (SWP), switches, and systematic transfer plans (STP).
Sebi had also stated that folios for physical securities would also be frozen if the Permanent Account Number (PAN), nomination, contact details, bank account details, and specimen signature were not submitted by December 31, 2023.
Last Date To File Belated ITR
Individuals who missed the July 31, 2023 deadline for filing their Income Tax Returns now have a chance to submit belated ITR before December 31, 2023, but with penalties.
The income tax return filed after the expiry of the deadline is called a belated ITR. One will have to pay a late filing fee and penal interest on taxes due (if any) when filing a belated ITR. Here are more details on the penalty and how to file a belated ITR.
Revised Timeline for IPOs
Sebi aims to make initial public offerings (IPOs) more efficient by reducing the time between the closing of an IPO and the listing of shares.
SEBI's move to shorten the listing period from T+6 days to T+3 days will start for all listings from December 1, 2023. On T+3 day, the advertisement regarding allotment should be published in all the newspapers where the opening and closing advertisements of the IPO have appeared earlier. Also, the trading will commence on the same day.
Bank Locker Agreement Deadline
RBI's revised rules demand the execution of updated locker agreements by December 31, 2023. So you might need to sign and submit an updated locker agreement if you have not done it so far.
As per the new rules, customers can keep only legitimate items in the locker. It formally rules out storing any illegal items like hazardous substances, etc. On any suspicion, the new rules give the bank the right to take ‘appropriate action’ against the customer. The new rules mandate that the bank’s liability in content loss cases will be ‘equivalent to one hundred times the prevailing annual rent of the safe deposit locker’. Also, if the locker rent is not paid for three years, the bank can break open the locker ‘following due procedure’ after informing the customer and allowing the customer to take the locker articles.
Inactivation of UPI IDs
The National Payments Corporation of India (NPCI) directive to deactivate dormant UPI IDs not used for over a year, should be completed before December 31, 2023.
NPCI has asked payment apps such as Google Pay, Paytm, PhonePe etc. and banks to deactivate the UPI IDs and numbers that have not been active for more than one year. This is done to secure the UPI ecosystem and prevent the wrong transfer of funds. So, users must activate their UPI ID before this date to avoid cancellation of their dormant UPI IDs. Meanwhile, before deactivating the user's UPI ID, the bank will give a notification to the user through email or message.
Special FDs To Mature in December
IDBI Bank has extended the validity date for special FDs dubbed as Utsav FD for 375 days and 444 days tenure, till December 31. Term deposits of special tenure of 375 days receive interest rates of 7.10 per cent. Senior citizens receive a 50 bps premium over this rate. State Bank of India (SBI)'s Amrit Kalash special fixed deposit (FD) deadline has also been extended till December 31, 2023, having the same interest rates as mentioned above.
Indian Bank, a public sector bank, has extended the special fixed deposit offering higher interest rate dubbed “Ind Super 400” till December 31, 2023. The same rates of IDBI Banks apply. Super senior citizens receive a 75 bps hike.