The deadline to file Income Tax Returns (ITR) for most taxpayers, including salaried individuals, pensioners, and small businesses not requiring audit, ends today, September 15. Those who miss the due date face penalties, interest charges, and loss of certain tax benefits.

Penalties for late filing

If the return is not filed by the deadline, taxpayers can still file a belated return until December 31. However, under Section 234F of the Income Tax Act, late filing attracts penalties.

• For income up to Rs5 lakh: penalty is capped at Rs1,000.
• For income above Rs5 lakh: penalty increases to Rs5,000.
  

Additionally, if any tax remains unpaid, Section 234A imposes an interest of 1% per month (or part thereof) until the return is filed.

Consequences of missing deadline

• Loss of certain tax benefits: Belated filers cannot carry forward specific losses such as business or capital losses.
• Restrictions on tax regime change: Taxpayers lose the option to switch between old and new tax regimes after the deadline.
• Refund delays: Those eligible for refunds will face delays compared to timely filers.
  

Steps to file before time runs out

• Gather documents: Form 16, Form 26AS, Annual Information Statement (AIS), bank interest certificates, and proofs of investments or deductions.
• Use the e-filing portal: File immediately to avoid last-minute portal congestion.
• Verify your return: Ensure the ITR is verified electronically or physically for it to be considered valid.
  

Indian stock markets opened lower on Thursday, reeling under the pressure of fresh US tariffs imposed on Indian goods.

At 9:17 am, the BSE Sensex dropped over 600 points to trade at 80,315, while the Nifty 50 declined nearly 180 points to 24,583. This comes a day after Washington enforced an additional 25% duty on Indian imports, raising the total tariff to 50%.

Broad-based sell-off across sectors

Market sentiment remained weak with 14 of the 16 major sectors posting losses. Small-cap and mid-cap indices also dipped, losing 0.2% and 0.1%, respectively.

The fall follows a steep correction earlier this week. On Tuesday, before the tariff announcement, both Nifty and Sensex fell by around 1% — their sharpest single-day decline in three months. Domestic markets remained closed on Wednesday for a local holiday.

Analysts warn of near-term pressure

According to market experts, Indian equities are likely to witness further volatility as investors digest the impact of the US action. The tariffs were imposed in retaliation for India’s continued crude oil imports from Russia, a move that has escalated trade tensions between the two nations.

In the month of September, there are many changes occurring, particularly in the financial sector. Some changes will take effect on the first day, while others will be implemented later in the month. This list will affect people’s finances.

The deadline to update an individual’s Aadhaar card details for free is quickly approaching. The Unique Identification Authority of India (UIDAI) extended the deadline from June 14 to September 14, 2023. This scheme is specifically for citizens who obtained their Aadhaar card 10 years ago and have yet to update their information. People can take this opportunity to update their details before it’s too late.

The nomination process for trading and demat accounts is mandatory for holders and the deadline for this has been extended by the Security and Exchange Board of India (SEBI). The account holders have to make nominations or opt out of it before September 30.

People will need to update and link of Aadhaar identity documents with PAN cards. Those who have credit cards from Axis Bank will also experience the effects of these changes starting this month.

As per the updated terms and conditions, Axis Bank’s Magnus credit card users need to pay higher fees. The annual fee has been increased to Rs 12,500. Also, the benefits associated with the card will be updated.  

This month marks the final opportunity for individuals to exchange Rs 2,000 notes. As stated by the Reserve Bank of India (RBI) in May, individuals may exchange or deposit these notes into their bank accounts before the specified deadline.

The central bank has specified that individuals may exchange or deposit for lower denomination notes, up to Rs 20,000 at a time, until September 30th. Interestingly, even after the deadline, Rs 2,000 notes will still be considered valid tender.

Starting from the current financial year, the Ministry of Finance has made it mandatory to provide both Permanent Account Number (PAN) and Aadhaar card information when making investments in small saving schemes such as the Public Provident Fund (PPF), Post Office Saving Scheme, and Senior Citizens Saving Scheme (SCSS). Existing subscribers must submit their Aadhaar number before September 30th, or their accounts will be frozen.