Linking Aadhaar and PAN
The deadline to link PAN with Aadhar is 31 March 2023. If not linked, the PAN will be deemed inoperative and transactions that require PAN will not be allowed. Also, if an invalid or false PAN is quoted where PAN is required, a penalty of Rs.10,000 will be charged.
Contribution to savings schemes
To avail of tax benefits under the old tax regime, contribution to savings schemes like PPF, NPS, Sukanya Samriddhi Yojana (SSY), ELSS of mutual funds and life insurance premiums must be made before the end of the financial year.
Capital gains
Capital gains on equities in excess of Rs.1 lakh each fi nancial year is taxable at 10% if held over one year (longterm capital gain). Hence, one can plan to redeem an investment in such a way that it crosses one year of holding and is redeemed before 31 March to avail the limit.
Nomination registration
Nomination has been made mandatory by SEBI for all mutual fund investors. So, all unit holders need to complete the nomination process before 31 March. The folios that do not comply with this requirement will be treated as frozen and no transaction will be allowed.Points to note
- Contributions to the Pradhan Mantri Vaya Vandana Yojana (PMVVY) can be made only up to 31 March 2023.
- After 1 April 2023, tax exemption on proceeds for annual life insurance premiums over Rs.5 lakh will not be eligible. So, such policies can be taken only till 31 March.
Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.
