Upcoming Important Tax and Finance Deadlines in 2024
The New Year has begun and with the beginning of this new year, many tax-related changes will also going to take place in 2024.
Here are some significant money deadlines for 2024 that one should be aware of to avoid paying penalties and missing out on investing opportunities.
Sovereign Gold bonds FY23-24 Last Investment Date
The Reserve Bank of India (RBI) announced the dates for the last tranche of Sovereign Gold Bonds (SGB) for the financial year 2023-24. Between February 12 and February 16, 2024, these SGBs will be available for subscription. If investors miss these investment deadlines, they will have to wait until the next SGB tranche opens for subscription. The dates have yet to be revealed, although they are believed to be around FY2024-25.
TDS Deduction on House Rent Paid
If you pay monthly rent of Rs 50,000 or more for residence in a financial year and have not deducted TDS throughout FY 2023-24, ensure that TDS is deducted in March 2024.
Income tax laws compel an individual paying monthly house rent of Rs. 50,000 to deduct tax when the house is vacated or at the end of the financial year. As a result, when you pay your rent for the month of March 2024, don’t forget to deduct TDS. Missing out on the tax deduction will result in a penalty.
Tax Savings Investments
If you intend to follow/use the old tax regime in the financial year 2023-24, you must complete all required tax-saving investments and expenditures by March 31, 2024.
Under the previous tax regime, an individual could invest in Public Provident Fund (PPF), ELSS mutual funds, Employees’ Provident Fund, and purchase life insurance, among other things, to claim a tax-related deduction under Section 80C.
Some of the expenses listed for a deduction from taxes under Section 80C include principal repayment on a home loan and payment of two children’s tuition. Aside from the Section 80C income tax deduction, one can additionally claim a deduction under Section 80CCD (1) for a Rs.50,000 investment in the National Pension System (NPS).
Aadhaar Updation Deadline
The deadline for free Aadhaar updation has been extended by the Unique Identification Authority of India (UIDAI) to March 14, 2024. The myAadhaar platform allows for free Aadhaar updation. Please keep in mind that there will be a fee if you update your Aadhaar by physically visiting the Aadhaar Seva Kendra. The price will be determined by the type of update performed.
Collection of Form 16 and Form 16A TDS Certificate
Employers, banks, and other financial institutions have until June 15 to submit TDS certificate(s) for tax deducted on salary/interest paid in the financial year 2023-24. The employer issues Form 16 for tax deducted from salary income during the financial year 2023-24. Salaried individuals require this TDS certificate in order to file their income tax return (ITR).
Banks, corporations, mutual funds, and other financial entities issue Form 16A for tax deductions on interest paid on fixed deposits, recurring deposits, and dividends paid on shares, mutual fund units, and so on.
The applicable TDS certificates must be collected and cross-checked with the Annual Information Statement (AIS) and Form 26AS, both of which are available through the income tax e-filing system. This is done to ensure that the tax deducted during the year (as shown on the TDS certificate) is accurately represented in your tax passbook (AIS and Form 26AS).
Deadlines of Special Bank FDs
Several banks have introduced special fixed deposit schemes with higher interest rates. Each bank has established its own deadline for investing in these FD plans. For example, the deadline to invest in the HDFC Senior Citizen Care FD is January 10, 2024. Likewise, the deadline for investing in SBI’s WeCare FD for senior citizens is March 31, 2024.
The ICICI Bank Golden Years FD is available to senior citizens till April 30, 2024. All retail customers of SBI are eligible for a special 400-day fixed deposit. The deadline for investing in this special FD scheme is March 31, 2024. For a 400-day tenure, the special FD scheme pays 7.10% interest per year to the general public and 7.60% to senior citizens.
ITR Filing Deadline
The income tax return for FY 2023-24 (AY 2024-25) is due on July 31, 2024. This deadline applies to persons whose accounts do not have to be audited. Typically, this date applies to those who file income tax returns using ITR-1, ITR-2, and ITR-4.
Individuals whose accounts have to be audited must submit the audit report for FY 2023-24 (AY 2024-25) by September 30, 2024. For such individuals, the deadline to file ITR for FY 2023-24 (AY 2024-25) is October 31, 2024.
Belated/ Revised ITR Filing
If you fail to file your income tax return by the deadline of July 31, 2024, you must file a belated ITR by December 31, 2024.
If you made an error in your initial ITR (filed on or before July 31, 2024), you can correct it by filing a revised ITR before December 31, 2024. The deadline for filing a late or updated ITR for FY 2023-24 (AY 2024-25) is December 31, 2024.
Payment of Advance Tax
If an individual’s net tax liability in a financial year (after deducting TDS) exceeds Rs 10,000, he or she must pay advance tax during the financial year. Because the financial year 2023-24 ends on March 31, 2024, an individual must pay the final advance tax installment by March 15, 2024.
The new financial year (FY 2024-25) will begin in April. The due dates for paying advance tax for the calendar year 2024 are as follows: the first installment is June 15, 2024, the second installment is September 15, 2024, and the third installment is December 15, 2024. Failure to make advance tax payments by the required dates can result in a penalty.
Adding Nomination in Demat Account and Mutual Fund Investments
The Securities and Exchange Board of India (Sebi) has extended the deadline for adding nominee(s) in Demat accounts and mutual fund investments from December 31, 2023, by 6 months. The new deadline is now June 30, 2024.
The investments will be blocked if nominee details are not added to the Demat account and mutual fund investment accounts. If a person does not want to include a nomination in their investments, they must provide a declaration to that effect.
