What’s should be your strategy for primary market in FY25?

Half- a-dozen money-related matters are going to change from October 1, 2021. These changes would have an impact on a person’s wallet. Some of these tasks must be completed by September. Otherwise, you will face problems while doing transactions. Money9 gives you a brief description of these.

Less in-hand salary

The Centre is set to implement several changes in labour rules from October 1, 2021. According to new labour law, the working hours of employees are going to be increased from 9 hours to 12 hours. The in-hand salary of the employees will also change after the implementation of the new labour law. According to the draft labour law, the basic pay of the employees will be 50% or more of the total salary. It is likely that other allowances in the total salary will also change after the implementation of new labour law.

It is to be noted that the hike in basic salary will directly affect the PF as it is based on Basic pay. An increase in the Basic pay will increase the PF, and this will result in a cut in the take-home salary. So be ready, from October onwards, you will have less in hand salary. So plan accordingly.

Link PAN-Aadhaar

After extending the deadline multiple times, the government has set September 30 as the latest deadline of linking PAN and Aadhaar. If PAN and Aadhaar are not linked with each other, from October 1, your PAN will become inoperative.

If your PAN becomes inoperative, you will no longer be able to conduct financial transactions wherever quoting of PAN is mandatory such as opening of demat account, savings bank account etc. Even existing accounts where PAN has been furnished will be impacted. Besides, you also have to pay a fine up to Rs 1,000.

New rule for auto debit

According to RBI guidelines customers need to give a nod for online auto debit transactions from October onward. You have to give a nod every month for payment of loan EMI, mobile bill payment, electricity bill payment, SIP payment, OTT payment and even credit card payment etc. from October 1, 2021.

Therefore, you should update your phone number with the bank. If the bank has the wrong mobile number, then your auto-debits will not get validated and will not get debited from your account. Missing an auto-debit payment can have penal consequences.

According to a RBI directive, banks are required to send notification to customers five days before the payments are scheduled. The debit would be allowed once it is confirmed by the customer. If the amount is more than Rs 5,000, the payment has to be authenticated via OTP every time by the customer.

This two-factor authentication was supposed to come into effect from April 1, 2021. However, big banks like State Bank of India, HDFC Bank etc. could not make arrangements to comply with it. Therefore, RBI extended the timeline by six months to September 30, 2021.

KYC for demat account

Securities and Exchange Board of India (SEBI) has already announced that the deadline to update KYC details in investors’ demat and trading accounts has been extended to September 30, 2021. The earlier deadline was July 31, 2021.

According to the order, an individual must update the following details like full name, address, PAN, mobile number, email ID and income range while opening an trading account or update if he/she has an existing demat or trading account.

If the KYC details are not updated, an individual will not be able to trade and the demat account will be deactivated. Even if shares are bought, then the transfer of such shares will not be completed till the time the demat account becomes fully KYC compliant.

Advance tax for FY22

September 15, 2021, is the last date to pay the second instalment of advance tax for FY 2021-22. An individual is required to make advance tax payment if his /her tax liability goes beyond Rs 10,000 except TDS.

If advance tax is not paid on time, then penal interest will be applicable on the tax due under certain section of IT Act, 1961.

ITR for FY21

An individual can file income tax return for the financial year 2020-21 till September 30, 2021. If the deadline is missed one will face hefty fine. If your income is below Rs 5 lakh in a year, then you have to pay Rs 1,000, otherwise you have to pay Rs 5,000 as penalty.

However, the new IT portal has a lot of glitches and the government may be compelled to extend the deadline. The government has given Infosys September 15 deadline to fix all glitches. But it will be wise to try and file the return before the deadline.