As the year 2023 draws to a close, there are several crucial financial tasks that individuals need to address before ushering in the New Year of 2024. With the arrival of 2024, several significant changes are slated to take effect, impacting various aspects of personal finance. These changes, set to commence from January 1, 2024, encompass multiple financial areas, including Demat account nominations, deactivation of inactive UPI IDs, new bank locker agreements, and the elimination of paper-based KYC for SIM cards.
Here is a rundown of the essential financial tasks that need completion before December 31:
Demat Account Holder Nominations and MF Holdings The Securities and Exchange Board of India (SEBI) extended the deadline for existing Demat account holders to select nominations by an additional three months until December 31, 2023. Furthermore, individuals holding physical securities have until December 31 to furnish PAN details, nominations, contact information, bank account particulars, and specimen signatures for their respective folio numbers.
Deactivation of Inactive UPI IDs The National Payments Corporation of India (NPCI) issued a circular on November 7, instructing payment apps and banks to deactivate UPI IDs and numbers inactive for over a year. All banks and third-party applications must adhere to this directive by December 31.
New Bank Locker Agreements The Reserve Bank of India (RBI) has introduced new regulations mandating customers to sign fresh agreements with their banks for safe deposit lockers. Customers are required to uphold rental payments to retain access to their lockers. The deadline to finalize these agreements is December 31, 2023.
Belated ITR Filing Deadline The deadline for filing Income Tax Returns (ITRs) for the fiscal year 2022-23 with penalty fees approaches on December 31, 2023. According to Section 234F of the Income Tax Act, individuals failing to file their returns before the due date will face late filing charges. Those missing the deadline will incur a penalty of Rs. 5,000. However, taxpayers with total incomes below Rs. 5 lakh will face a reduced penalty of Rs. 1,000.
Elimination of Paper-based KYC for SIM Cards From January 1, 2024, individuals seeking new SIM cards will no longer need to fill out paper forms. The Department of Telecommunications (DoT) has issued a notification discontinuing the paper-based Know Your Customer (KYC) process from January 1. The decision follows numerous amendments in the KYC framework, as stated in the notification dated August 9, 2012.
Be aware that, these financial tasks demand immediate attention before the end of December 31, 2023, to ensure compliance with the impending changes and regulations set to take effect in the forthcoming year.
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