No Dividend Income: Did You Forget This Important Task On March 31?

As the financial year 2024-2025 concluded on March 31, 2025, several critical financial deadlines passed. Missing these could impact your tax liabilities and financial planning. Here's a recap of essential tasks that required attention:

PAN-Aadhaar Linking 

If you haven’t linked your PAN (Permanent Account Number) with your Aadhaar by March 31, 2025, your dividend income could stop starting April 1. This mandatory linkage is crucial to avoid financial setbacks. Companies and mutual funds will not process dividends for unlinked PAN accounts
 

Why This Matters

Failing to link PAN with Aadhaar could lead to direct financial losses, especially for investors relying on dividend income. To avoid disruptions, ensure your PAN is linked before the deadline.

Dividend Income Reporting

Since April 1, 2020, dividends received from Indian companies are taxable in the hands of the recipient. Taxpayers must report this income and pay any applicable taxes. Neglecting to do so can lead to penalties and interest charges. 

Tax-Saving Investments

March 31 was the deadline to make tax-saving investments under Section 80C of the Income Tax Act, of 1961. Instruments like the Public Provident Fund (PPF), Equity-Linked Savings Schemes (ELSS), and tax-saving fixed deposits qualify for deductions up to Rs 1.5 lakh. Failing to invest by this date means missing out on these deductions for the fiscal year. 

Advance Tax Payments

Individuals with additional income sources, such as dividends, were required to pay any remaining advance tax by March 31. This ensures compliance and helps avoid interest penalties under Sections 234B and 234C of the Income Tax Act. 

Updated Income Tax Returns (ITR)

March 31 also marked the final date to file updated Income Tax Returns for the Assessment Year 2023-2024. This allowed taxpayers to rectify errors or include omitted income in their previously filed returns. 

Special Fixed Deposit Schemes

Several banks offered special fixed deposit schemes with enhanced interest rates, with investment windows closing on March 31. For instance, SBI's Amrit Kalash scheme provided attractive rates for both general and senior citizens. Missing these deadlines meant forfeiting the opportunity to benefit from higher returns. 

Ensuring timely completion of these financial tasks is crucial for maintaining compliance and optimizing financial benefits. If you miss any of these deadlines, it's advisable to consult with a financial advisor to understand the implications and explore possible corrective measures.