- Date : 30/06/2023
- Read: 3 mins
Come July 2023 and there will be four major changes in the financial sector. Each change can impact you. So, here’s what you need to know about them.
- Four major financial changes are happening in July 2023
- The ITR filing deadline is 31st July 2023 and you should also link your Aadhaar and PAN before July
- You can opt for a higher pension by 11th July 2023
- The merger between HDFC and HDFC Bank would be completed in July. Thereafter, you should check your investments and loans for any changes.
The financial sector changes constantly to keep up with the changing economy and laws. Come July 2023, some important changes and updates are lined up which you should know about to manage your finances effectively. So, let’s have a look at the four important financial updates for July 2023.
4 Changes Happening From July 2023
1. ITR Filing
It's that time of the year again when you are required to file your income tax returns. While the tax department has pushed the deadline in previous years, this year the deadline stands. You have to file your returns by 31st July 2023 to avoid a penalty for late filing. The penalty is ₹5000 if you miss the deadline but file your returns by 31st December 2023. However, if your income is below ₹5 lakhs, the penalty is only ₹1000.
2. Application for Higher Pension
The Pension Fund Regulatory and Development Authority (PFRDA) allowed for a higher pension on your salary income. You can choose the higher pension option wherein 8.33% of your salary would be directed to the Employees Pension Scheme (EPS) to create a higher pension corpus for enhanced pension payments. While your contribution of 12% would be directed to the Employees’ Provident Fund (EPF) account, an increased portion of your employer’s contribution would be directed to the EPS account.
If you want to opt for the higher pension option, the deadline to do so has been extended till 11th July 2023.
Also Read – Are you eligible for a higher pension? Find out
3. Aadhaar – PAN Linking
If your PAN and Aadhaar cards are not linked, the last date to do so is 30th June 2023. If the linking is not done, your PAN number would become inoperative and you will face the following consequences from July 2023 –
- An income tax refund would not be paid, if applicable. You would also not get interest on the refund if you are owed any.
- TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) would be charged at higher rates.
- ITR filing would not be possible
- Investing in mutual funds and equity shares would not be possible
- A higher tax would apply to IDCW (Income Distribution cum Capital Withdrawal Schemes
4. HDFC and HDFC Bank Merger
HDFC and HDFC Bank would complete their merger by 13th July 2023. Once done, you should track your loans and deposits as their interest rates or other terms might change. Plus, you should check whether your nearest branches of either entity would remain operative or close.
Click here to read the latest articles on Personal Finance News
The bottom line
Keep track of these changes and check how they impact your financial plan. Make provisions for the changes so that your plan remains on track to fulfil your financial goals without any repercussions.
Also Read – Which ITR should you file? Learn more.
