KYC to Pan-Aadhar Linking- 8 major monetary tasks you need to finish Before March 31st
The deadline for numerous money-related duties will likewise expire at the end of March 2022. PAN-Aadhaar linkage, updated or late ITR filing, bank account KYC update, minimum investment necessary in modest savings schemes such as Public Provident Fund (PPF), National Pension System (NPS), and so on are some of the critical money activities that must be completed by March 31, 2022.
On or before March 31, 2022, an earning individual must fulfil the following eight vital monetary tasks:
1) Belated or revised income tax return (ITR) filing: The deadline to file a belated ITR for AY 2021-22 is March 31, 2022. As a result, taxpayers who failed to file an ITR by the due date are urged to file a late income tax return by March 31, 2022. Similarly, the deadline for reporting a late or updated ITR for the fiscal year 2020-21 is March 31, 2021. If a taxpayer files a late ITR online, he or she can still make changes by March 31, 2022. As a result, if you detect an error in your e-filed ITR, you still have time to correct it before the deadline of March 31, 2022.
2) PAN-Aadhaar card linking: The deadline to seed a PAN with an Aadhaar card is March 31, 2022. Failure to satisfy this deadline will result in the inactivation or invalidation of one’s PAN card. Carrying an invalid PAN card can result in a $10,000 penalty under section 272B. TDS on bank deposit interest would also be raised.
3) Bank account KYC update: The Reserve Bank of India (RBI) has extended the time for updating bank account KYC from December 31, 2021 to March 31, 2022, citing the mounting Omicron risk. As a result, bank account holders should update their KYC by the new deadline, or their accounts may be frozen.
4) Investments to reduce income tax outgo: The current financial year will expire at the end of March. As a result, a taxpayer should review their tax-saving investments to verify that they have maximised their investment in tax-saving instruments such as the Public Provident Fund (PPF), National Pension System (NPS), ELSS Mutual Funds, and other similar instruments. If there is still time to make a tax-saving investment, they must do it before March 31st, 2022.
5) Linking small savings scheme with bank account/post office savings:
From April 1, 2022, interest on MIS/SCSS/TD accounts will be credited only to the account holder’s PO Savings Account or Bank Account, according to the Department of Post. To continue receiving interest credit on schedule, one must link one’s small savings programme accounts with a post office account and a bank account.
The latest circular notes, ““Interest on MIS/SCSS/TD accounts will be credited only in account holder’s PO Savings Account or Bank Account with effect from 01.04.2022. In case an account holder is not able to link his/her Savings Account with MIS/SCSS/TD accounts up to 31.03.2022 and interest is credited in MIS/SCSS/TD sundry office accounts, the outstanding interest should be paid only through credit in PO Savings Account or by Cheque. Interest payment in cash shall not be allowed from MIS/SCSS/TD sundry office accounts, the outstanding interest should be paid only through credit in PO Savings Account or by Cheque. Interest payment in cash shall not be allowed from MIS/SCSS/TD sundry office account w.e.f. 01.04.2022.”
6) PM Kisan KYC update: For PM Kisan registered farmers, e-KYC is now required. As a result, registered PM Kisan farmers must update their KYC before March 31, 2022, either online or offline. If this deadline is not met, the following PM Kisan instalment will not be paid.
7) Maintaining minimum contribution on PPF, NPS account: An earning individual invests in PPF and NPS accounts to reduce their income tax liability. However, by the end of March 2022, one must verify that the minimum required funds have been invested in a single financial year. In a single financial year, a minimum annual deposit in a PPF account is $500, whereas a minimum annual deposit in a Tier-1 NPS account is Rupees 1,000.
8) KYC for demat and trading account: NSDL and CDSL must verify that six KYC features — name, address, PAN, valid mobile number, valid e-mail ID, and income range — are maintained in existing demat and trading accounts, according to a SEBI circular released in April 2021.