As we approach the end of the financial year, it's important to take stock of our finances and ensure that we have completed all the necessary pending tasks before the 31st March deadline. Failure to do so can result in the loss of some important financial benefits.
Here are five critical financial tasks that you should complete before the deadline.
1. Mutual Fund Nominee Update
If you have invested in mutual funds, it's essential to update your nominee details by 31st March 2023. Failure to do so can result in the freezing of your mutual fund account. The nominee update is a simple process that can be done online through the mutual fund provider's website.
By updating your nominee details, you can ensure that your investment benefits are passed on to your loved ones in case of your untimely demise.
2.Linking Aadhaar to PAN
If you haven't linked your Aadhaar card to your PAN (Permanent Account Number), your PAN will become inoperative from 31st March 2023.
This means that you will not be able to use your PAN for any financial transactions. The linking of Aadhaar and PAN is a straightforward process that can be done online through the Income Tax Department's website.
By linking your Aadhaar to PAN, you can ensure that your financial transactions are not to be faulted and stress-free.
3.Tax Saving under Section 80C
If you haven't yet planned your tax-saving investments for the financial year 2022-23, now is the right time to do so. Section 80C of the Income Tax Act allows individuals to claim a maximum deduction of Rs 1.5 lakh from their taxable income.
By investing in tax-saving instruments such as Equity-Linked Saving Schemes (ELSS), Public Provident Fund (PPF), National Savings Certificate (NSC), and others, you can reduce your taxable income and lower your income tax liability.
4.Pradhan Mantri Vaya Vandana Yojana Extension
The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension scheme for senior citizens that provide a guaranteed interest rate of 7.40% per annum.
The scheme, which was initially launched in May 2017, has been extended till 31st March 2023. If you are a senior citizen looking for a safe investment option with a guaranteed return, PMVVY can be an excellent choice for you.
5. Tax-Free Insurance Premium
If you want to save tax on your insurance premium over Rs 5 lakh, you must purchase an insurance policy before 31st March 2023. If you meet this deadline, the amount you pay towards the premium will be tax-free.
This can be a significant saving, especially for those who have high-value insurance policies.