Important Financial Market News for July: 4 Things Investors and Traders Should Know

As we enter July, there are four significant changes in the financial landscape that investors and traders need to consider. These updates include the deadline for filing income tax returns, applying for a higher pension, linking PAN with Aadhaar, and the impending merger of HDFC Bank and HDFC. 

Let us look at each financial news update one by one to help you understand their specifics.

Key Highlights

  • July 31 is the deadline for filing income tax returns for FY 2022-23.
  • Employees can apply for a higher pension based on actual salary until July 11.
  • PAN-Aadhaar linking must be completed by June 30 to avoid penalties and potential operational restrictions.
  • Late filing of tax returns can result in penalties of up to Rs 5,000 or Rs 1,000 for those with income below Rs 5 lakh.
  • An Inoperative PAN from July 1 can lead to issues with tax refunds, interest payments, and higher TDS and TCS rates.

Here Are The 4 Key Updates From The Latest Financial Market News

No. 1 – File Your Income Tax Returns 

The due date for filing income tax returns for the financial year 2022-23 is July 31. To avoid penalties, it is advisable to start the filing process as soon as possible rather than waiting until the last minute. Missing the deadline and completing the process by December 31 will result in a penalty of Rs 5,000. However, if your income is less than Rs 5 lakh, the late filing fee will be limited to Rs 1,000.

Common Mistakes to Avoid in ITR Filing:

  1. Selecting the wrong ITR form can lead to notice and penalties. Choose the appropriate form based on your income sources.
  2. Review and reconcile Form 16 and Form 26AS to ensure accurate reporting of tax deductions and income.
  3. Report all sources of income, including interest earned from bank deposits.
  4. Declare income from previous employers if you changed jobs during the financial year.
  5. Avoid last-minute filing to prevent missing documents and technical issues.
  6. Verify your filed returns within 120 days to avoid invalidation and the need for belated filing.

If you are a stock market trader or investor, here is a quick guide to help you file your ITR returns- A Comprehensive Guide to ITR Filing for Stock Traders

No. 2 – Linking PAN Card with Aadhaar Card

The deadline to link your PAN with Aadhaar is June 30, 2023. If you fail to do so, your PAN card will be inoperative from July 1. Non-compliance will have various repercussions, including the non-issuance of tax refunds, non-payment of interest on excess taxes paid, and higher rates of TDS- tax deducted at source and TCS- tax collected at source. It is important to link your PAN and Aadhaar as it is required for filing income tax returns and making investments in mutual funds and stocks as per SEBI rules.

For a quick check to see if your Aadhaar card is linked to your PAN card, follow these steps:

  1. Go to the official website of the Income Tax Department’s e-filing:
  2. Enter your PAN number and Aadhaar number in the provided fields.
  3. Click on the “Validate” button.
  4. A message will appear indicating whether your Aadhaar card and PAN card are already linked. 
  5. If the message confirms the linkage, your Aadhaar and PAN are successfully linked. Otherwise, you will be instantly prompted to link your Aadhaar card with your PAN card.

In case your Aadhaar card is not linked with your PAN card, follow these steps to do it by June 30th and avoid penalties.

No. 3 – Apply for a Higher Pension on Actual Salary

EPFO- Employees’ Provident Fund Organisation (EPFO) has extended the deadline until July 11 for employees to choose the higher pension option. If you were a member of the EPFO and EPS before September 1, 2014, and missed availing of the higher pension option earlier, you can now apply for it. You must decide whether to file a joint application with your employer to claim a higher pension based on your actual salary. 

To know more about the EPS Pension scheme and the latest formula to calculate pension, check- EPFO Releases Formula for Higher EPS Pension.

No. 4 –  HDFC Bank and HDFC Merger

The merger between HDFC Bank and HDFC is expected to be concluded either on July 1 or July 13, subject to certain formalities and factors beyond their control. After the merger, account holders and borrowers should keep an eye on changes in home loan rates, deposit rates, and operational procedures. 


Staying updated with stock market news and regular financial news updates is important if you are an active stock market trader or an investor.

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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.