New Rules On Auto-Debit Payments To ITR Filing: 5 Money Tasks That You Must Complete This Month

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The month of September is important as there are five important money tasks that must be completed this month. In case you miss some of these deadlines, you may end up paying a penalty.

Here are some important money tasks which need to be completed this month:

ITR filing 

30 September 2021 is the last date to file an income tax return (ITR) for FY 2020-21 for individuals. Amid the Covid-19 pandemic, the deadline was extended from its earlier usual deadline of 31 July. If you miss the 30 September deadline of ITR filing then you will be liable to pay late fees of ₹5,000. However, the late fee will not exceed ₹1,000 if the total income does not exceed ₹5 lakh in a financial year.

Auto debit transactions

Starting from next month (1 October 2021), auto-debit payments from your bank account will require two-factor authentication. So, it is important that you have updated your mobile number in the bank’s records. The auto-debit mandate is usually given for mutual fund SIPs. The RBI has made the additional factor of authentication mandatory from 1 October. The bank would need to send you a communication five days in advance and at least 24 hours before the payment date to your mobile number.

Complete KYC in Demat account

Investors with Demat accounts or trading accounts have been advised by depositories to complete their know-your-customer (KYC) details by September 30. Failure to do so would result in the deactivation of their accounts.

Aadhaar-PAN linking deadline

The last date to link PAN cards with Aadhaar is 30 September 2021. After the deadline ends, all the PAN cards which are not linked to Aadhaar would become inoperative.  A PAN card is mandatory for opening a bank account and carrying out other financial transactions.

Aadhaar-PF linking mandatory

From September, employers will be able to credit their contribution to your provident fund (PF) account only if you have your Aadhaar linked to your universal account number (UAN). Employees’ Provident Fund Organisation (EPFO) has amended Section 142 of Code of Social Security, 2020, making this linking mandatory for availing of services, seeking benefits, receiving payments etc.

PF account holders will be able to avail of the full range of benefits only if they have linked their Aadhaar to their UAN. Without completing this linking process, neither employee nor employer contribution could be deposited in PF accounts.

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