Digital shifts in 2024: Key changes impacting UPI IDs, SIM cards, tax returns and more from January 1

As we approach the dawn of 2024, several regulatory shifts are set to reshape the digital landscape, bringing forth changes that may impact various aspects of our lives. Here's a roundup of crucial digital transitions scheduled to take effect from January 1, 2024, urging individuals to take note and ensure compliance.

1. Inactive UPI IDs Facing Deactivation: The National Payments Corporation of India has mandated that banks and popular payment applications, including Google Pay and Paytm, deactivate UPI IDs that have been dormant for a year or more. Users who have not engaged in any UPI transactions by December 31, 2023, risk losing the ability to receive funds on their UPI IDs.

2. Digital KYC for New SIM Cards: The Department of Telecommunications (DoT) is bidding farewell to paper-based KYC processes for SIM cards. Beginning January 1, individuals seeking new SIM cards will undergo an Aadhaar-enabled digital KYC process, eliminating the need for cumbersome paper forms.

3. Income Tax Returns Deadline: December 31 is the final opportunity for individuals to file their income tax returns (ITRs) for the fiscal year 2022-23 (AY 2023-24). Late filers should be aware of a penalty, with a maximum of Rs 5,000 (or Rs 1,000 for incomes below Rs 5 lakh). Additionally, this date serves as the deadline for filing revised returns if needed.

4. Update Nominations in Demat Accounts: Stock traders and mutual fund participants must take note of an extended deadline by the Securities and Exchange Board of India (Sebi). The new deadline for demat and MF account holders to provide nominations is June 30 of the upcoming year, allowing additional time for individuals to designate beneficiaries or make alterations.

5. Parcel Shipping Costs on the Rise: DHL Group, overseeing logistics brands such as Blue Dart, has announced a general price increase of approximately 7%, effective January 1. Customers utilizing DHL's services for shipping parcels, both online and offline, should anticipate higher costs as a result.

As we bid farewell to 2023, these impending changes underscore the need for individuals to stay informed and proactively address necessary tasks before the new year begins. Whether it's managing digital accounts, filing tax returns, or adjusting to altered shipping costs, early awareness and action will pave the way for a smoother transition into 2024.

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