As December 2024 approaches, it’s time to gear up and stay financially vigilant. This month brings several critical deadlines that can directly impact your tax planning, investments, and personal financial management. With the right information and preparation, you can not only avoid penalties but also maximise your savings and returns.
1. Aadhaar Update: Leverage the Free Service
The UIDAI has announced a free service for Aadhaar updates until December 2024. This is a golden opportunity for those whose Aadhaar details, such as name, address, or date of birth, are incorrect.
How to avail: The free service is available only through the online portal.
Benefits: Accurate Aadhaar details facilitate seamless access to banking services, government schemes, and tax filing.
2. Last Date for Delayed ITR Filing: 31 December
Taxpayers who missed filing their Income Tax Returns (ITR) on time have until 31 December 2024 to do so. Missing this deadline can attract significant penalties.
Taxpayers with income exceeding Rs 5 lakh will face a penalty of Rs 5,000.
Those earning below Rs 5 lakh will incur a penalty of Rs 1,000.
Filing your ITR on time expedites the tax refund process.
3. Special FD Schemes: Grab Higher Interest Rates Before They End
Several banks are offering higher interest rates under special Fixed Deposit (FD) schemes that end in December 2024. This is a great opportunity for investors to park their savings in a secure and lucrative option.
Examples:
SBI offers interest rates up to 7.75% for senior citizens.
ICICI and HDFC also provide rates exceeding 7% for a limited time.
Note: FD interest rates are subject to change based on inflation trends.
4. Senior Citizen Savings Scheme (SCSS): Benefit from the Increased Limit
In the 2023 budget, the government raised the investment limit under the Senior Citizen Savings Scheme (SCSS) from Rs 15 lakh to Rs 30 lakh. This provides senior citizens with an excellent opportunity to secure and grow their retirement funds.
The current interest rate for SCSS is 8.2%, higher than most other safe investment options.
This scheme is exclusively available for individuals aged 60 and above.
The enhanced limit may not extend beyond December 2024.
5. Review Your Tax-Saving and Investment Plans
December is not just about meeting deadlines but also the perfect time to review your financial portfolio. Ensure that your tax-saving investments, such as PPF, ELSS, and LIC policies, are on track and payments are made on time.
6. Business-Related Financial Deadlines
For entrepreneurs, it’s crucial to ensure all GST returns, advance tax payments, and audit-related tasks are completed before the deadlines.
Why Meeting Deadlines Matters
Failing to meet these deadlines can result in:
Financial penalties.
A negative impact on your credit score and tax records.
Missed opportunities to benefit from special interest rates and schemes.
By adhering to deadlines, you can:
Maximise your savings and returns.
Stay connected with government schemes.
Efficiently manage your finances.
Are You Ready?
December 2024 is a month of financial responsibilities. Whether it’s updating your Aadhaar, filing delayed ITRs, or taking advantage of special FD rates, these deadlines should be your top priority. Review your financial plans, seize opportunities, and start the new year on a strong financial footing.