Several critical financial deadlines, from income tax to mutual funds, fall in June, besides one related to the driving licence application process. Hence, this month is vital for various reasons. Here are the details of the financial deadlines and rules effective in June.

Income Tax Filing

Form 16 is a crucial document to check before filing your income tax returns. It summarises your total income and tax deductions in the previous fiscal year. Employers issue it in June as a tax deduction at source (TDS) certificate, which is submitted to the Income Tax Department. Employees should obtain Form 16 from their employers before filing income tax returns.

Advance Tax

For individuals with an estimated tax liability of over Rs 10,000, the first advance tax payment must be made by June 15. This method helps in cash flow management by spreading income tax payments over the year. To prevent interest accrual, part of the total tax liability is paid with each instalment. Three additional payments are required on September 15, December 15, and March 15.

Also Read: RBI Repo Rate Unchanged: Should You Lock Your Money In FDs Now Or Wait?

Driving License & Traffic Violations

The Ministry of Road Transport and Highways announced new regulations for obtaining a driving license in India. Starting June 1, 2024, individuals can take driving tests at private training centres instead of government RTOs. These centres will be authorised to conduct tests and issue certifications for license eligibility. The government has introduced penalties to prevent violations of the law. For example, drivers without a valid driving license can face fines between Rs 1,000 and Rs 2,000.

Additionally, a steep fine of Rs 25,000 has been set for underage driving. The owner’s vehicle registration will be cancelled, and the minor will be ineligible for a license until they reach the age of 25. These changes aim to improve traffic safety. The ministry also seeks to phase out around 900,000 old government vehicles to reduce pollution.

Also Read: Death Claim Proceeds Are Largely Tax-Exempt; Check ULIP’s Performance, Surrender Value Before Quitting: Expert

Mutual Funds Nomination

Mutual fund investors must name a nominee for their folios by June 30, 2024. Accounts of investors without nominees will be frozen from July 1, 2024. This rule applies to folios created before October 1, 2022. In frozen accounts, transactions like swaps, redemptions, and STPs are prohibited. Investors can verify and update their nominee details online or by calling mutual fund providers. They should consult a financial advisor to resolve the issue when in doubt.