8 Essential Personal Finance Tasks: Don't Leave Them Undone by March 31st, 2023 | Spring Money

31st March is a date that every Indian taxpayer remembers very well because it is the deadline to take care of all their financial liabilities. As the financial year 2022-23 is nearing its end, it's time to take a look at your personal finances and ensure that everything is in order. As an Indian citizen, there are certain financial tasks that you must complete before 31st March 2023 to avoid any last-minute rush or penalties.

In this blog, we will discuss the top 8 personal finance tasks that you should not keep undone by 31st March 2023.

1. Link PAN and Aadhaar:

To avoid losing access to financial activities that require a PAN card like mutual funds, stocks, or opening a bank account, it's crucial to link your PAN to your Aadhaar card before March 31st, 2023. Failure to do so will result in the PAN card becoming invalid. Also, you will have to pay a fee of ₹1 thousand to link them after the deadline.

How to Link PAN with Aadhaar?

Linking PAN and Aadhaar isn’t that hectic, to do so follow the below-given guidelines; a) Go to the Income Tax e-filing portal -https://eportal.incometax.gov.in/iec/foservices/#/pre-login/bl-link-aadhaar b) Then enter your PAN and Aadhaar number in respected boxes. c) Click on Continue to Pay Through e-Pay Tax. d) Enter your PAN, Confirm your PAN, and enter a Mobile number to receive OTP. e) Post OTP verification, you will be redirected to the e-Pay Tax page. f) Click on Proceed in the Income Tax column. g) Select Assessment Year (2023-24) and Type of Payment as Other Receipts (500) and Continue. h) Applicable amount will be pre-filled against Others and click Continue, and it’s done, you will receive a confirmation message.

2. Invest for Tax Saving:

As the financial year 2022-2023 ends on March 31st, just like every financial year, taxpayers are reminded to consider making tax-saving investments. This is an opportunity for you to decrease your total tax liability, particularly if you are part of the taxable income category. To ensure you don't miss out on this chance, act quickly! There are a plethora of popular tax-saving options available, including PPF, NPS, tax saver bank FD, life and health insurance premiums, home loan interest, Sukanya Samriddhi Yojana(SSY), and others.

3. Make Sure Your PPF/NPF/SSY Account Don’t Get Deactivated:

If you've invested in accounts such as PPF, NPS, or SSY, it's essential to remember that they require a minimum deposit every financial year to remain active. Failing to do so will result in the account being closed and requiring reactivation, which can be time-consuming and come with a fine. Hence it’s better to make sure you deposit the minimum amount on time. It's a small step that can save you significant hassles in the future.

Account Name	Minimum Amount Required in a Year
Public Provident Fund (PPF)	₹500
National Pension Scheme​(NPF)	₹500
Employee Pension Scheme(EPS)	₹1 Thousand
National Pension Scheme(NPS)	₹1 Thousand
Sukanya Samriddhi Yojana(SSY)	₹250

4. Pay Installment of Advance Tax:

If you're anticipating an income tax liability of ₹10 thousand or more in the current financial year(2022-2023), you must pay advance income tax in four instalments throughout the year, as per income tax regulations. March 15th, Tuesday, is the deadline for your last instalment for revenue generated in FY 2022-23. So mark your calendars! Remember, this applies to all taxpayers, including employees, freelancers, and corporations, except for senior citizens aged 60 and above who do not earn income from a profession or company. Salaried individuals with no additional income need not worry, as their employers are responsible for deducting the required tax from their monthly wages and remitting it to the department.

5. Add Nominee for Mutual Funds:

If you invest in mutual funds and have not yet added a nominee then you would have definitely received a notification from fund houses to do so, because the Securities & Exchange Board of India(SEBI), made it compulsory on 1st October 2022. Don’t ignore or wait any longer to nominate your mutual funds! The clock is ticking, as the 31st of March 2023 is the deadline and failure to complete this process will result in your mutual fund account being frozen.

6. Submit Documents to Your Employer to save tax:

As a salaried individual, you may be entitled to reimbursements for expenses such as medical bills, telephone bills, leave travel, and house rent allowance. It's true! And the good news is that you can claim tax exemptions for these expenses, but you'll need to submit proof of your expenses to your employer. Don't miss out on these potential savings - make sure you're taking advantage of all the benefits available to you.

7. Pradhan Mantri Vaya Vandana Yojana(PMVVY):

If you or any senior citizen in your family is looking for a reliable source of income, the Pradhan Mantri Vaya Vandana Yojana (PMVVY) could be just what they need! This amazing scheme, offered by LIC, guarantees a regular monthly income for 10 years, providing you with the financial security you deserve. Best of all, anyone over the age of 60 can participate, regardless of their maximum entry age. But the applications are only being accepted until March 31st, 2023. Click Here to read more about Pradhan Mantri Vaya Vandana Yojana(PMVVY).

8. Buy Policies to Claim Tax Benefits:

If you are looking to buy a life insurance policy with higher premiums then this is the time. Because after the 31st of March 2023, only those policies with aggregated premiums of up to ₹5 lakhs or less will be liable for tax exemptions.

This is because the 2023-24 Union Budget suggests restricting tax exemption for these high-value life insurance policies.

Conclusion:

There are other things as well that one should or could do before the financial year ends. Above we have mentioned the top 8 things that one could go through before the 31st of March 2023. By completing these tasks before the deadline, individuals can avoid the last-minute rush, and penalties, and enjoy potential savings and financial security. Therefore, it's essential to take action now and make the most of these opportunities.