ITR filing, small savings scheme interest rate to PAN-Aadhaar link: Five changes in financial landscape in July 2023

ITR last date to PAN Aadhaar link: After ushering in July 2023, an earning individual needs to consider some important changes taking place in the financial landscape. These changes includes income tax return (ITR) last date as due date for ITR filing ends on 31st July 2023. Apart from this, deadline for PAN-Aadhaar link has ended on June 30, 2023. The Employees' Provident Fund Organisation (EPFO) has extended the deadline for choosing higher pension to 11th July 2023. In case, an earning individual was an EPFO member or EPS member prior to 1st September 2014, they have a chance to apply for the facily if they missed to apply for the same.

Here we list out five changes in the financial landscape taking place in July 2023:

1] ITR last date: The due date for ITR filing for the financial year 2022-23 or for the assessment year 2023-24 ends on 31st July 2023. So, those earning individuals who need to file their income tax return, they need to do this by the given due date. Failing to do this, may lead to late fee charge up to ₹5,000. As per the income tax rules, if you miss to file income tax by due date but by the last date i.e. 31st December 2023, the in that case you will have to pay late fee up to ₹5000 if your income is more than ₹5 lakh. In case, your annual income is less than ₹5 lakh, then in that case you will be charged a late fee of ₹1000.

2] PAN-Aadhaar link: The deadline for Aadhaar-PAN link has ended on 30th June 2023. But, those whose PAN and Aadhaar are still not seeded will be able to file their respective ITR. But, the income tax department will not process their return till they seed their PAN with Aadhaar. Those who failed to seed their Aadhaar and PAN, their PAN card has become inoperative and hence they need to seed their PAN with Aadhaar paying ₹1,000 penalty. Till 30th June 2023, the penalty was ₹500.

3] Chance for high EPFO pension: The EPFO extended the deadline to apply for high pension from 26th June to 11th July 2023. So, EPFO and EPS members who joined prior to 1st September 2014 and missed to apply for the higher pension, they have one more chance to apply for the higher pension by the given deadline in July 2023. Those who retired before 1st September 2014 and had signed up for the higher pension option will have to validate the information.

4] Taxation on overseas remittance: The Government of India (GoI) had earlier announced to raise tax on outbound remittance from 5 per cent to 20 pr cent. However, this will now become effective from 1st October 2023. This means, you have an additional three months to spend on exotic overseas tours. Investors investing in abroad have three more months to invest overseas paying 5 per cent tax on outbound remittance from India.

5] Small savings interest rate: Central government has hiked the interest rates of select small savings schemes by up to 70 bps for the July-September 2023. quarter. The interest rate on the national savings certificate (NSC) has been hiked by 70 basis points (bps), the highest for any instrument in this revision. The interest rates of schemes like the 1-and 2-year post office time deposit, 5-year recurring deposits have been hiked.

Mahila Samman Bachat Patra can now be opened in 12 public sector banks and four private sector banks. The scheme was announced in the Union Budget this year, and was only available through post offices.