5 Things To Do Before 31st March: Personal Finance Checklist

March is the month to sort out your personal finance if you haven’t already. The FY 2023-24 is about to end and we have things to do before 31st march. 

We Indians love to keep things for the 11th hour. Ha bhai kar lenge is our mantra. 

But…now we have a few days left to complete financial year-end planning. 

So, keep your laptop handy, we are going to do it right now!

Top 5 Things To Do Before 31st March

1. Link Your PAN to your Aadhaar

First thing first, link your PAN to your Aadhaar if you haven’t done it yet. Failing to do so will make your PAN inoperable in the next financial year.

The easiest way to link the two documents together is via the Incometax Portal.

On the portal, Locate the ‘Link Aadhaar Status’ under quick links on the menu. Enter your PAN and Aadhaar and Click on View Link Aadhaar Status. If it is linked…Congratulations. 

If not, the portal will redirect you to the page to link your documents. You may have to pay a 1000 Rs. late fee. 

Note-> The deadline has been extended till June 30, 2023. 

2. Add Nominee Details for Your Mutual Funds Investments

Adding nominees to your Mutual Funds will only take a couple of minutes. 

Complete the task before 31st March to avoid freezing your investment. You may not be able to transact without the nominee declaration.

Steps to Add/Update Nominee:

  • Go to the CAMS Portal
  • Enter Your PAN number and Click Next
  • It’ll show you the mutual fund investments linked to your PAN.
  • Select the one (or all) where you want to Add/update the nominee
  • Proceed with OTP verification
  • You will come across a form to add one or more nominee details.

The change will get reflected within a few hours. 

Note-> The deadline has been extended till September 30, 2023. 

3. 80C TAX-Saving Investments

Taxation is probably the most tiring task. But you gotta do it to save the tax.

Invest in Tax saving instruments before 31st March to get tax exemption. Our advisors have curated a list of tax-saving investments under section 80C of an IT act. 

Note- If you already have a PPF account, don’t forget to make one installment for the current FY, anything between INR 500 to 1.5L. 

4. File an Updated ITR for FY-2019-20 (ITR-U)

The last date to correct/update the ITR for FY-2019-20 is 31st March 2023. 

If you want to make any changes to your ITR for FY-2019-20, the ITR-U form is for you. You can make the relevant changes and re-submit the form. Though you may come across some late fees during the process.

5. Book Long Term Capital Gains

Long-term capital gains up to Rs. 1,00,000 are eligible for tax exemption. Gains (long-term) over and above INR. 1,00,000 are taxed at 10%.

Here’s how you can lower the tax amount with a strategic withdrawal when close to 31st Mar: Instead of withdrawing all your mutual fund gains at once, make a partial withdrawal – break it into 2 parts. Before 31 st Mar and after 31st March.

For example, let’s say you have invested 10 lakhs and have earned 3 lakhs gain. Out of 3 lakhs, 1 lakh will be tax-free. But you’ll have to pay 10% on the remaining INR. 2,00,000, which is INR. 20,000 if you withdraw all of it before 31st Mar. 

Instead, you can redeem half this financial year i.e. INR. 1,50,000 (in the above example) and pay tax on only INR. 50,000, which is INR. 5,000. Repeat the same at the start of the next financial year. 

By withdrawing the investment in two halves, you only paid INR. 10,000 tax instead of INR. 20,000. 

If you are planning to book profits anytime soon or redeem your investments, make use of this since the financial year is about to end, you can redeem partial investment before 31st march. And the remaining can be done on 1st of April when the new financial year starts.

See? That wasn’t so difficult, was it? Enter the new financial year with zero headaches, well-planned personal finance, and new money goals.

Be sure to analyze your investment portfolio to understand tax liabilities. If you have any queries regarding Mutual fund investments, taxation, and better wealth management, give us a call. 

Our advisors will outline an investment plan matching your goals for the upcoming financial years. The earlier you invest, the better outcomes you achieve.

Check out more blogs on personal finance to plan your investments accordingly.