July kicked off with changes in the interest rates of some small savings schemes. Although it is a critical month for tax-related matters, other significant personal finance-related dates also fall in July.
Income Tax Return (ITR) Filing: The last date to file your income tax returns for FY 2022-23 is July 31, 2023. If you miss the deadline, you will have to pay a late fee. So complete the ITR filing before the last day to avoid last-minute glitches. Also, remember to verify the return after you file it. The maximum time to confirm the return is 30 days from the filing date.
Higher Pension Deadline For EPS: The Employees' Provident Fund Organisation (EPFO) has extended the last date to apply for a higher pension for the third time on June 26, 2023. Now the deadline is July 11, 2023. If you wanted to apply but could not, there is still time to complete the formalities. EPFO published a detailed set of Frequently Asked Questions (FAQs) last month to help you in the application process.
HDFC Bank Senior Citizen Care Fixed Deposit: HDFC Bank offers 7.75 per cent interest rates to senior citizens on its fixed deposits (FD) of five years one day to up to 10 years. Usually, the interest rate is 0.50 per cent higher for seniors on FDs than for non-seniors. But HDFC is offering an extra 0.25 per cent interest for seniors. The deadline is July 7, 2023, to get an additional 0.75 per cent interest on FDs for seniors.
Seniors who want to book FD at 7.75 per cent for a tenure of 5 years and one day to 10 years may do so with HDFC bank before the last date. The rate will apply for both new FDs and renewals. Premature withdrawal is allowed in these FDs with a penalty.
HDFC Bank And HDFC Merger: The housing finance company HDFC and the private sector lender HDFC Bank merger is effective today, July 1, 2023. The union may mean some changes in the lending rates. The borrowers now need to track and confirm with HDFC bank for any changes in their loans taken from HDFC before the merger.
Linking PAN And Aadhaar: The last date of PAN and Aadhaar linking was June 30, 2023. If the linking is not done by the deadline, the PAN will become inoperative effective today, July 1, 2023. It means that higher tax will be deducted at source (TDS) and tax collected at source (TCS), no refund against the inoperative PAN, and no interest payable on the refund amount for the period the PAN remains inoperative.
However, one can apply to make it operative again by paying a fee of Rs 1000. The activation will take 30 days to be effective from the date of application.
Notably, for filing the ITR, the linking is optional, as per the Income Tax Department. Also, for senior citizens aged 80 years and above, PAN and Aadhaar linking is not mandatory.