 "Key financial changes coming into force from Jan 1 that taxpayers must know")
As 2025 gets underway, it is important to be aware of crucial deadlines that could impact finances, including the filing of belated income tax returns, reporting foreign income, and taking advantage of special fixed deposit offers.
Belated ITR filing
Taxpayers who missed the initial deadline have time until January 15, 2025, to file their income tax return (ITR) for financial year 2023-24 (AY 2024-25). This date applies to those filing a belated ITR, subject to a penalty of up to Rs 5,000. Additionally, December 31, 2024, was the final date for submitting a revised ITR.
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Availing of Vivad Se Vishwas scheme
The deadline for the Direct Tax Vivad Se Vishwas scheme, which offers taxpayers an opportunity to resolve disputes with the tax department by paying a reduced amount, is also crucial. To benefit from this initiative, taxpayers must act before January 31, 2025. This scheme is especially advantageous for individuals dealing with prolonged litigation over tax-related issues.
Updated Fixed Deposit (FD) rules by RBI
The Reserve Bank of India (RBI) has introduced revised guidelines for fixed deposits (FDs) with non-banking financial companies (NBFCs) and housing finance firms. Important highlights include:
Penalty-free withdrawals for small deposits: FD holders can withdraw amounts under Rs 10,000 before maturity without penalties.
Critical illness clause: Individuals diagnosed with critical illnesses can withdraw the full FD amount before maturity.
New EPF ATM service launch in 2025
From 2025, Employee Provident Fund (EPF) account holders will benefit from a new ATM service, enabling convenient withdrawals of EPF funds directly through ATMs. This initiative aims to simplify fund access, helping account holders easily manage their savings and address urgent financial needs.
Mandatory multi-factor authentication (MFA) for GST compliance
Effective January 1, 2025, the government will require all taxpayers to implement multi-factor authentication (MFA) for accessing GST portals. This security upgrade aims to strengthen protection against fraud.
Reporting foreign income and assets
The last date to report any foreign income or assets was December 31. The Income Tax Department has highlighted that failing to disclose such information can lead to severe consequences, including fines of up to Rs 10 lakh or, in extreme cases, imprisonment.