As the financial year is coming to an end, there are a few things that MFDs/RIAs should address before Mar 31, 2022. This will not only help to set clear business goals but also deepen client relationships.
Here are the top four things that should form a part of your financial year-end checklist.
Aadhaar and PAN Linking
Failure to link Aadhaar and PAN can make your clients’ PAN inoperative. With an inoperative PAN, your clients cannot make any financial transaction.
Further, it will also attract higher rates of TDS and TCS.
You can make an inoperative PAN operative again by completing the linking process. However, it will be subject to a penalty of up to Rs. 1,000.
Click here to know your Link Aadhaar status and click here to know the linking process.
Send reminders to your clients
Remind your clients to do this before the financial year comes to an end -
- Submit relevant documents with employer i.e. investment proof (ELSS, PPF, etc), Form 12BB (in case of a job switch), expense proof (rent receipt, premium receipt, etc)
- File belated return or revised return for FY 2020-21
- Ensure meeting the minimum deposit criteria to avoid dormancy/discontinuance of accounts i.e. Rs. 500 in PPF account, Rs. 1,000 in Tier-I NPS account, etc
Your clients will appreciate such reminders and will also experience your personalised touch.
Conduct review meetings with clients for the next financial year
Sit down with your clients to review their overall portfolio. You may take this opportunity to increase wallet share from existing clients. Also, you can re-evaluate your clients’ risk appetite, financial goals and relook at their asset allocation.
Chalk down your one-year business plan
Evaluate your business performance over the last year and devise a business plan for the coming year. Ask relevant questions like what is my business goal this year and how can I achieve this goal.
These were the four things at the top of our minds that need your attention before Mar 31, 2022. Is there anything else that you would like to add to this list? Do let us know by the way of the comment section below.
