As March draws to a close, the buzz surrounding the financial year 2025-26 has intensified. March 31, 2026, is the deadline for many important financial tasks. If you invest in the stock market or have a bank account, you have very little time left to complete these three most important updates. If you don't complete these tasks by 12 midnight on March 31, 2026, your account could be frozen, or you could face a hefty penalty.
1. Nomination in Bank and Demat: According to SEBI and RBI regulations, it is now mandatory to add a nominee to all bank and demat accounts. If you haven't added a nominee yet, your account may become inoperative. You can complete the e-nomination process from home using net banking or your stockbroker's app. Simply providing the nominee's name and your relationship to them is sufficient.
2. KYC update and bank account activation: Several banks, including Punjab National Bank (PNB), recently issued notifications asking customers to update their KYC details. Accounts that have not seen any transactions in the past two years have been declared inoperative. Such customers have until April 15, but due to the March closing, it's safest to complete this process by March 31st. Visit your home branch with your Aadhaar card, PAN card, and your latest photo, or avail of Video KYC.
3. Tax Saving and PAN-Aadhaar Linking: This is your last chance to save tax at the end of the financial year. Invest in PPF, ELSS, or life insurance before March 31 to receive a deduction of up to Rs 1.5 lakh. If your PAN card is still not linked to Aadhaar, it may have become inoperative. Immediately initiate the process of re-linking it, subject to a penalty of Rs 1,000, or you will not be able to file your Income Tax Return (ITR).
If you miss these deadlines, you may face several problems starting April 1, 2026:
- Your demat account may be frozen, preventing you from selling shares.
- There may be restrictions on withdrawing or transferring money from the bank account.
- TDS rates can go above 20 per cent.
