March is a critical month for financial planning, and there are several changes in the financial landscape that you need to consider. From Axis Bank’s acquisition of Citi’s consumer business to mutual fund nomination, tax planning, linking PAN and Aadhaar, and more, it’s essential to stay up to date with the financial market and news. Here are the seven significant changes you need to consider.
1. Link Your PAN and Aadhaar to Avoid Late Fee
The deadline for linking your Aadhaar and PAN cards has been extended by the CBDT from March 31, 2022, to March 31, 2023. However, if you now miss the deadline, you must pay a penalty of ₹1000 instead of ₹500 (which was declared for last year’s deadline) to complete the linking process. It is essential to link your Aadhaar and PAN cards as soon as possible to avoid further penalties and to file your income tax returns smoothly.
2. Axis Bank’s Acquisition of Citi Consumer Business
Citibank’s consumer business in India will transfer to Axis Bank starting March 1, 2023, completing the acquisition process that began in March last year. The deal includes credit cards, home loans, personal loans, retail banking, and insurance distribution, among other products. Customers should expect significant changes, particularly for home-loan borrowers and credit cardholders.
3. Mutual Fund Folios without Nomination Will be Frozen
All mutual fund folios, held jointly or singly, must have a nominee or an explicit opting-out declaration by March 31, 2023. If you don’t have a nominee, you should approach the fund house immediately to exercise your choice to avoid freezing your folios after the deadline.
4. Last Month to Invest in PMVVY
The Pradhan Mantri Vaya Vandana Yojana (PMVVY), a pension scheme dedicatedly to senior citizens aged 60 years and more, will cease to exist after March 31, 2023. The scheme allows senior citizens to invest up to Rs 15 lakh and provides an annual income of Rs 1.11 lakh for ten years.
5. Avoid High-Premium Insurance Policies to Escape Tax
Buying insurance policies with an aggregate premium above Rs 5 lakh after March 31, 2023, will attract tax. Investment-based insurance policies tend to yield lower returns than pure-term covers, making it a mistake to purchase them.
6. SBI raised a loan of $1 billion from an Overseas Market
The State Bank of India (SBI) has completed a Syndicated Social Loan Facility worth $1 billion. The loan was for $500 million, with a $500 million greenshoe option which is an over-allotment option under which the underwriter gets a right to sell more shares than the predetermined limit due to higher demand than the expected one.
Dinesh Khara, Chairman of SBI, said, “As a responsible and sustainable organisation, we are committed to conducting our business operations with the highest standards of Environmental, Social, and Governance (ESG) practices. Issuance of our first social loan is an embodiment of our commitment to ESG driven by our belief that our long-term success depends not only on our financial performance but also on our ability to make a positive impact on the environment, on society, and on our stakeholders.”
7. Do Not Procrastinate in Tax Planning
Tax optimisation is an essential aspect of financial planning that should be considered throughout the year. Investing in existing commitments such as PPF, NPS, SSY, monthly SIP in ELSS, EPF, or life insurance premiums can help achieve your tax planning goals. Additionally, buying health insurance can provide additional tax benefits under Section 80D of the Income Tax Act.
Multiple changes take place in the stock market daily. That’s why it is always recommended to invest wisely after the right education and research. And then can you lead towards your financial goal achievement wisely.
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Sources: moneycontrol.com
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Disclaimer: Investments in the securities market are subject to market risks, read all the related documents carefully before investing.