PAN-Aadhaar Linking, Higher EPF Pension, And Other Important Personal Finance Deadlines In June 2023

June 2023 is crucial for important personal finance tasks such as applying for a higher pension and linking PAN with Aadhaar. Here are the key deadlines that are approaching next month

From the deadline for applying for a higher pension to PAN-Aadhaar linking, June 2023 is crucial for some important personal finance tasks that need to be completed. Knowing important dates related to them can help you avoid penalties, meet filing deadlines, and stay updated with tax laws. 

It will help you plan your finances effectively and stay compliant with regulations, preventing any legal or financial consequences. Here are the key deadlines that are approaching next month.  

PAN-Aadhaar linking 

In March 2023, the Finance Ministry extended the deadline to link PAN with Aadhar till June 30, 2023. Starting July 1, 2023, taxpayers who have failed to link their Aadhaar to their PAN card will face consequences. It was announced that the PAN of such taxpayers will become "inoperative".

If you have missed the initial deadlines to link PAN with Aadhar, you can still link them after paying a fine of Rs 1,000. It can be done on the NSDL portal by paying the fine using Challan No. ITNS 280, with Major head 0021 and Minor head 500. It should be noted that the Income Tax department does not process tax returns until PAN and Aadhaar are linked.

Free Aadhaar update

In a move to support people with updating their Aadhaar documents, the Unique Identification Authority of India (UIDAI) in March had announced free updates in Aadhaar online. However, the free service was available only for three months, i.e., March 15 to June 14, 2023. Physical Aadhaar centers charge a fee of Rs 50 for document updates.

The move was aimed to help people who needed to revalidate their demographic information, particularly if Aadhaar was issued more than 10 years ago. 

You can update your Aadhaar documents on the myAadhaar portal.

Applying for higher EPF pension

The deadline for EPF subscribers to opt for a higher pension is June 26, 2023. Retirement fund body Employees’ Provident Fund Organisation (EPFO) had announced the extension of the deadline earlier this month. Subscribers to the Employee Provident Fund (EPF) can now contribute more towards their pension beyond the salary limit of Rs 15,000 per month. Both the employee and the employer can jointly request the EPFO to deduct 8.33 per cent of the higher monthly basic salary. This allows for a larger accumulation towards the pension fund over the course of their working years.

Bank locker agreement renewal

The Reserve Bank of India (RBI) has given banks a new deadline to update their locker agreements. By December 31, 2023, banks are required to complete the phased renewal of these agreements. By June 30, 2023, banks should have achieved 50 per cent enrollment, and by September 30, 2023, they should have achieved 75 per cent enrollment. The RBI wants banks to ensure that the updated agreements do not contain unfair terms or conditions and protect the interests of customers. Some banks, like SBI and the Central Bank of India, have asked their customers to sign the updated agreements by December 31, 2022.

Additionally, here is a list of important tax-related dates for June 2023:

June 7, 2023

The due date for depositing the tax that was deducted or collected for the month of May 2023 is June 7, 2023. This refers to the deadline for individuals or entities who have deducted or collected taxes from payments made to others, such as TDS (Tax Deducted at Source) or TCS (Tax Collected at Source), to deposit the corresponding tax amount. 

June 14, 2023

The due date for issuing TDS (Tax Deducted at Source) certificates for tax deducted under sections 194-IA, 194-IB, 194M, and 194S in April 2023 is June 14, 2023. These sections pertain to different types of payments on which tax is required to be deducted at the source, such as rent payments, certain specified payments by individuals or Hindu Undivided Families, payments made to contractors or professionals, and commission or brokerage payments. The TDS certificates serve as proof of tax deduction and are provided by the deductor to the deductee.

June 15, 2023 

Due date for the first installment of advance tax for the assessment year 2024-25: Taxpayers are required to pay advance tax in installments throughout the year. The first installment for the assessment year 2024-25 is due on a specified date. Advance tax is an estimated payment of taxes based on projected income.

Due date for the certificate of Tax Deduction at Source for employees regarding salary payment and tax deduction during the financial year 2022-23: Employers must issue a certificate of tax deduction at source to employees, detailing the salary payment and the corresponding tax deductions made during the financial year 2022-23. This certificate helps employees in filing their income tax returns accurately.