Important Financial Deadlines for December 2024

Deadlines

Important Financial Deadlines for December 2024

Deadlines

As the end of 2024 approaches, it’s vital to keep track of key financial deadlines to avoid penalties and make the most of available opportunities. This month’s deadlines cover income tax payments, Aadhaar updates, special fixed deposit schemes, and changes to credit card rules. Here’s an overview to help you stay organized:

1. Advance Tax Payment: Due by December 15, 2024

Taxpayers not under the presumptive taxation scheme must adhere to the following advance tax payment schedule:

  • June 15: 15% of total tax liability

  • September 15: 45% of total tax liability

  • December 15: 75% of total tax liability

  • March 15: 100% of total tax liability

Timely payments will help you avoid interest charges and maintain compliance with tax laws.

2. File Belated Income Tax Returns by December 31, 2024

If you missed the initial deadline to file your income tax return, you still have until December 31, 2024, to submit a belated return for the assessment year 2024-25. Filing on time can help you avoid penalties and streamline your financial processes.

3. Free Aadhaar Updates: Offer Ends December 14, 2024

Aadhaar card holders can update their demographic details at no cost via the myAadhaar portal until December 14, 2024. After this date, updates made at offline centres will incur a fee. Don’t miss this chance to update your Aadhaar information for free.

4. Special Fixed Deposit Schemes: Invest Before December 31, 2024

Several banks are offering limited-time fixed deposit (FD) schemes with attractive rates that expire at the year’s end:

  • IDBI Bank Utsav FDs: Features special tenures of 300, 375, 444, and 700 days with competitive returns.

  • Punjab & Sind Bank FDs: Multiple special schemes with various tenures also close on December 31, 2024.

Consider these options to secure higher interest rates and grow your savings.

5. Axis Bank Credit Card Updates: Effective December 20, 2024

Axis Bank will implement changes to its credit card terms, including:

  • Finance/Interest Rates: The finance charge for the Airtel Axis Bank Credit Card will increase from 3.6% per month to 3.75% per month.

Evaluate these changes to understand their impact on your credit card usage and plan accordingly.

Read More: Avoiding Common Errors in Income Tax Payments

Add these deadlines to your calendar to stay compliant and take advantage of available opportunities. Being proactive can save you from unnecessary penalties and help you optimize your finances as 2024 comes to an end.

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        New Guidelines on Cash Deposits: What You Need to Know

        Cash Deposits

        New Guidelines on Cash Deposits: What You Need to Know

        Cash Deposits

        With the Income Tax Department’s latest guidelines, there are new rules regarding cash deposits into savings accounts that everyone should be aware of. Here’s a breakdown of what you need to know to avoid hefty taxes and ensure compliance.

        Understanding Cash Deposit Limits

        In today’s digital age, having a savings account is almost essential. It not only helps in managing day-to-day transactions but is also necessary to benefit from various government schemes. While there are no restrictions on the maximum balance you can hold in your savings account, there are specific rules concerning cash deposits and withdrawals that you need to be aware of.

        Cash Deposit Limits Explained

        • Deposit Amounts and PAN Requirement: When depositing cash, if the amount is Rs 50,000 or more, you must provide your PAN number. This is to ensure that the source of the cash is traceable.

        • Daily and Annual Limits:

          • Daily Limit: You can deposit up to Rs 1 lakh in cash per day.
          • Non-Regular Deposits: If you don’t deposit cash regularly, this limit can go up to Rs 2.50 lakh.
          • Annual Limit: Over a financial year, you can deposit a maximum of Rs 10 lakh in cash across all accounts you hold. This is a cumulative limit for all your accounts.
        Cash Deposits

        Monitoring and Reporting

        Deposits exceeding Rs 10 lakh in a financial year will attract the attention of the Income Tax Department. Banks are required to report such large deposits, which may prompt an investigation if the source of the funds is not satisfactorily explained.

        Potential Consequences

        If you cannot provide a satisfactory explanation for the source of the deposited funds, you might face severe tax implications:

          • Tax Rate: A substantial 60% tax may be levied on the amount.
          • Additional Charges: In addition to the tax, a 25% surcharge and 4% cess could be applied.

        Best Practices for Managing Large Sums

        Instead of keeping large amounts of cash in your savings account, consider alternative options:

        • Fixed Deposits (FDs): Convert large sums into FDs to earn better interest.
        • Investments: Explore investment opportunities that offer better returns than a savings account.

        Read More: How to Respond to a Defective Return Notice under Section 139(9)

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              This July, Finance Minister Nirmala Sitharaman will present the first Union Budget of the newly elected government. Anticipate potential changes in income taxes, medical expense deductions, increased tax rebates, and enhanced pension benefits. The specifics of these changes will be revealed in the Union Budget 2024.

              2. Income-Tax Returns

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              3. SEBI on Joint Mutual Fund Portfolios

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              4. Citibank Credit Cards Transition to Axis Bank

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              5. YES Bank Credit Card Updates

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              6. Paytm Wallet Closures

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              7. HSBC Bank Credit Card Changes

              Effective July 1, certain transactions will no longer accrue reward points for HSBC Bank credit cardholders. These transactions include education and government-related payments, insurance premiums, e-wallet loading, fuel transactions, tax payments, and utility transactions.

              Financial Changes

              8. PNB Debit Card Updates

              Starting July 1, 2024, Punjab National Bank (PNB) will update its lounge access program for RuPay Platinum Debit cardholders. The new program offers:

              • One complimentary domestic airport or railway lounge access per quarter
              • Two complimentary international airport lounge accesses per year
              • An authorization charge of ₹2 for airport lounge access

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