Personal Finance

Personal Finance: Be Watchful of These Deadlines, Changes in 2024

With 2024 around the corner, there are a few financial deadlines and changes that an individual is required to address suitably. 

Here’s the lowdown on a few key changes and deadlines to remain watchful:

January 1, 2024: Insurance companies to provide comprehensive policy details

As per the Insurance Regulatory and Development Authority of India (IRDAI) directions, all insurance companies (insurers) will have to provide a Customer Information Sheet (CIS) to their policyholders. The CIS aims to simplify complex policy details and offer transparency to policyholders regarding understanding their insurance coverage. 

The new CIS format will be effective from January 1, 2024. The CIS will include every basic information related to an insurance policy, introduced in easy-to-understand language.  Details such as the policy name and number, coverage information, sum insured, exclusions, waiting periods, limits to coverage, and the claims process will be provided to policyholders.

March 14, 2024: Free updation of Aadhaar 

The Unique Identification Authority of India (UIDAI) has provided a window of up to March 14, 2024, for free updation of Aadhaar. However, this service is free only on the myAadhaar platform and attracts a fee of Rs.50 at physical Aadhaar centres.

March 31, 2024: Tax-saving investment

The deadline for tax-saving investments for FY2023-24 will culminate on March 31, 2024. Tax planning is one of the crucial measures for financial planning since the main objective is to reduce tax liability and save more. The lesser tax an individual has to pay, the more disposable income they would have in hand.

While taking advantage of the tax-saving options available, an individual can look forward to saving a considerable amount of taxes.

June 30, 2024: Mutual funds, demat account holders nomination deadline

Mutual funds and demat (dematerialised) account holders are mandated to nominate a beneficiary or opt out of it by June 30, 2024. In case investors miss the nomination deadline, markets regulator the Securities and Exchange Board of India (SEBI) is likely to freeze debits from their holdings. For investors, it would mean they would not be able to withdraw from mutual funds or use their demat accounts for trading.

July 31, 2024: Income tax return (ITR) filing deadline

As per the Income-Tax Act (ITA), 1961, ITR filing is an annual activity to be undertaken by every citizen in the country. Taxpayers can claim the refund of the excess tax paid or deducted during a financial year by filing it. The deadline for filing an ITR for the financial year (FY) 2023-2024 or assessment year (AY) 2024-2025 will end on July 31, 2024.

Advance tax payment instalments

The tax that is paid within the same financial year in which the income is earned is referred to as advance tax. Typically, this is paid in four instalments. About 15% of the total tax liability must be paid up to June 15, while 45% must be paid by September 14. This comprises the instalment paid in June.

Until December 15, the liability is 75% which includes installments for June and September. Then, up to March 15, the entire tax, which is 100%, is required to be paid, as per the ITA.

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