A list of new financial and tax-related (GST, Income Tax) obligations following January 1st. As we enter the New Year, there are a number of financial and tax changes that one need to care from Jan 01st 2024.
To know the list of activities you should have performed before Dec 31st 2023, refer Money and taxes: Checklist before December 31st 2023
Income Tax Filing
The deadline for taxpayers to submit refund claims for FY 2022-23 has passed, with the deadline set for December 31, 2023. As of January 1, 2024, taxpayers are obligated to submit updated tax returns or face a minimum 25% penalty on the tax payable.
Learn more from Updated Return (ITR-U) u/s 139(8A) Income Tax Guide
Disabled UPI IDs
All inactive UPI IDs will be deactivated beginning on January 1, 2024. You may contact the bank and/or a third-party application to reactivate and/or obtain a new UPI ID if you are affected. Alternatively, you may use the mobile app to reactivate and/or obtain a new UPI ID.
In general, the instructions are as follows: navigate to the app, locate the Profile/UPI section, and select the option to enable or deactivate UPI in order to begin using.
Changes to Sukanya Samriddhi Scheme & Bank Rates
The interest rate on the Sukanya Samriddhi Scheme has been raised from 8.00% to 8.2% for the January to March 2024 quarter. It increases the profitability of the scheme for the investors.
In addition, there are several changes on the average saving rates related banks, post offices and pension institutions. Learn more on Best Income Tax Saving Investment Options in India
Simplified Health Insurance policy documents
As of January 1, 2024, simplified health insurance policy documents will be accessible to policyholders. This is an excellent step by IRDAI, as it facilitates policyholders' comprehension of the benefits of the policies.
Learn more on Health, Travel, Term Insurance from EZTax
Bank Lockers & KYC
Bank lockers whose revised locker agreements have not submitted will be frozen starting from 01st January 2024. The locker holders are required to visit the banks and take necessary steps to unfreeze the bank lockers.
Learn more on Bank Lockers (Safe Deposit Box) - a Complete Guide
Simplified SIM Card Activation Process
Physical verification of SIM cards will be discontinued on January 1, 2014, in accordance with Department of Telecommunications regulations. As a result, the KYC process for simcard issuance will be conducted digitally.
Cyber Security: Change Passwords
Regularly changing the passwords for your UPI App, email accounts, net banking portals, and income tax portals is an essential precaution to ensure the security of your data.
Upcoming Budget 2024
Regarding the Interim Budget, it is anticipated that the esteemed finance minister, Smt. Nirmala Sitharaman, will unveil revisions that impact investors and consumers on February 1, 2024. Expect upcoming communication from EZTax.
Refer Indian Budget 2024 | Pre-Budget Expectations that was released on Jan 11th 2024.