Five personal finance deadlines you can’t afford to miss in June

• Many important personal finance deadlines fall in June, so it is important to tick them off your list.
  
• Missing these deadlines can lead to accounts becoming inactive, tax filing issues, or fines.
  
• Nomination deadlines for your mutual funds, trading and demat accounts are 30 September.
  

June 2023 is the deadline for many important personal finance tasks that need to be completed. For many of these, the deadlines have been extended after past deadlines expired. It is important to tick them off your list as soon as possible to avoid account deactivation, fines or other consequences. Here are the upcoming deadlines you need to be aware of.

PAN Aadhaar link

The Finance Ministry has extended the deadline to link your Permanent Account Number (PAN) with Aadhaar until June 30, 2023, from the earlier deadline of March 31. However, starting July 1, an individual’s PAN will become inoperative if it is not linked to Aadhaar.

If you have missed the previous deadlines, you still have the option to link your PAN with Aadhaar, but now you will have to pay a fine of ₹1,000. This can be done on the NSDL portal. It's important to note that the Income Tax department will not process tax returns until PAN and Aadhaar are linked.

Update Aadhaar for free

The Unique Identification Authority of India (UIDAI) announced free updates for Aadhaar documents in March so that individuals could update any information on their Aadhaar card, e.g address, etc. However, this free service is only available till June 14. After this period, such updates need to be done through physical Aadhar centers, which charge a fee of ₹50 for document updates. To update Aadhaar documents, you can use the myAadhaar portal.

Apply for higher pension under EPF

The deadline for applying for a higher EPF pension is June 26. Subscribers to the Employee Provident Fund (EPF) can now contribute more towards their pension beyond the salary limit of ₹15,000 per month. Both the employee and the employer can jointly request the EPFO to deduct 8.33% of the higher monthly basic salary. This allows for a larger accumulation towards the pension fund over the course of their working years.

Bank locker agreement

The Reserve Bank of India (RBI) has set a new deadline for banks to update their locker agreements. It is required for banks to prepare the locker agreement on stamp paper, with the banks being responsible for providing the stamp paper at no cost to the customers.

The revised agreement is designed to protect the interests of locker holders, by promoting transparency and providing clear information on the terms and conditions governing the use of the locker facility.

By December 31, 2023, banks are mandated to complete the phased renewal of these agreements. The RBI expects banks to achieve 50% enrollment by June 30, and 75% enrollment by September 30. If you have received a message from your bank, you need to complete the formalities as soon as possible.

Payment of advance tax

In India, salaried individuals, self-employed professionals and businesses whose estimated tax liability for the financial year exceeds ₹10,000 are required to pay advance tax in installments during the year. If you are a salaried employee, the employer will deduct the required taxes and you do not need to pay advance tax if you do not have any other source of income. Advance tax has to be paid in four installments, the first installment of 15%, needs to be paid by June 15.

Mutual fund, trading and demat account nomination deadline

This is not in June. As per regulatory guidelines, investors are required to mention nominees for their fund folios or notify the fund house of their decision to opt out of nominations by September 30. This ensures that appropriate arrangements are in place for the transfer of assets in case of the investor's demise, and thus it is important. The earlier deadline was 31 March. The deadline for mentioning nominees for trading and demat accounts is also September 30.

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