Guide for Taxpayers: Things to Do Before 31st March 2025
The taxpayers need to make proper planning so they can maximise deductions, avoid penalties, and streamline tax compliance as the financial year comes to a close on March 31, 2025. Here is a checklist of key actions to take before the deadline expires.
Invest in Tax-Saving Instruments
By investing in approved tax-saving instruments, you can claim deductions up to ₹1.5 lakh under Section 80C. The popular options include:
- Employee Provident Fund (EPF) where employees can contribute up to 12% of their basic salary, which helps in long-term wealth accumulation.
- Public Provident Fund (PPF) is a government-backed savings scheme that offers a secure investment with competitive interest rates (around 8%) and partial withdrawals after 7 years.
- Equity Linked Savings Schemes (ELSS) is a market-linked investment product with a 3-year lock-in period.
Tax Savings with Government Schemes
- Senior Citizen Savings Scheme (SCSS) is a government scheme that is designed for individuals aged 60 and above.
- Sukanya Samriddhi Yojana (SSY) is a government scheme designed to secure the financial future of a girl child.
- National Pension System (NPS) is a retirement-focused savings scheme.
Fourth Installment of Advance Tax
The fourth installment of advance tax is due by March 15, 2025. Missing this deadline could result in penal interest under Sections 234B and 234C of the Income Tax Act.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.