Year-End Financial Checklist: 6 Must-Do Tasks Before December 31, 2023

Must do financial tasks

As the year draws to a close, its essential to pay attention to critical financial tasks to ensure a smooth transition into the new year. Heres a comprehensive year-end financial checklist encompassing six must-do tasks before December 31, 2023.

Mutual Fund Nominations Deadline

SEBI has extended the deadline for mutual fund nominations to December 31, 2023. Unitholders must utilise specified forms through fund houses, registrars, or online platforms to opt for or out of nominations in their mutual fund (MF) units.

What if you miss it?

Failure to comply may result in the freezing of folios and restrictions on MF transactions such as redemptions, systematic withdrawal plans (SWP), switches, or systematic transfer plans (STPs).

Belated Income Tax Return (ITR) Filing

For those who missed the July 31, 2023, deadline for filing income tax returns (ITR), theres an opportunity to submit belated ITRs until December 31, 2023.

Revised Timeline for IPOs

Starting December 1, 2023, SEBI aims to expedite the efficiency of initial public offerings (IPOs). The listing period for IPOs will be shortened from T+6 (transaction plus six days) to T+3 days, including the advertisement regarding allotment.

Bank Locker Agreement Renewal

RBI has mandated the execution of updated locker agreements by December 31, 2023. Customers are advised to promptly sign and submit the updated agreements to ensure compliance. The revised rules explicitly state permissible items in lockers, prohibiting illegal or hazardous substances.

Inactivation of UPI IDs

The National Payments Corporation of India (NPCI) has directed the deactivation of dormant Unified Payment Interface (UPI) IDs unused for over a year, slated to be completed by December 31, 2023.

What all are included?

Payment apps and banks, including Google Pay, Paytm, and PhonePe, are obligated to deactivate UPI IDs inactive for more than a year. Users should activate their UPI IDs before the deadline to prevent cancellation.

Special Fixed Deposits (FDs) Deadline Extension

IDBI Bank has extended the validity date for special fixed deposits (FDs), known as Utsav FDs, for tenures of 375 days and 444 days until December 31, 2023. The 37-day term deposit offers a 7.10% interest rate, with senior citizens enjoying a 50 basis points (bps) premium.

What about SBI Bank?

Similarly, the State Bank of India (SBI) has prolonged the deadline for its Amrit Kalash special FD until December 31, 2023, offering a 7.10% deposit rate and an additional 50 bps for senior citizens.