10 financial tasks to complete before the March 31, 2025 deadline

1. Tax exemption benefits (Section 80C):

One can claim the advantage of the tax exemptions of up to Rs 1.5 lakh by investing in various savings and investment plans such as ELSS mutual funds, Public Provident Funds (PPF), Employees’ Provident Funds (EPF), National Savings Certificates (NSC), and tax-saving Fixed Deposits (FDs), which later can provide significant tax deduction benefits under Section 80C.

2. Tax exemption with NPS under Section 80CCD (1B):

Tax exemption for investment in the National Pension System (NPS) of up to Rs 50,000 is applicable under Section 80CCD(1B) for over and above the deduction of Rs 1.5 lakh available under Section 80C of the Income Tax Act 1961, thereby enabling one to benefit from it while planning for retirement.

3. Tax benefits on health insurance under Section 80D:

Further, one can also claim a tax deduction of up to Rs 75,000 for the premium health insurance paid covering yourself and your family under Section 80D, offering Rs 50,000 per fiscal year for senior citizens aged 60 years and above.

4. Filing the updated ITR (Income Tax Return):

If an error has been made in your Income Tax Return (ITR) for the financial year 2023-24, you have until March 31, 2025, to file an updated return. Missing this window may lead to penalties, so be sure to correct any mistakes on time.

5. Tax payment to avoid penalties:

If applicable, March 31 is the last date to pay an updated Income Tax Return for Assessment Year 2022-23 (AY 2022-23). Further, if one’s total tax liability (excluding Tax Deducted at Source or TDS) is more than Rs 10,000, it’s advisable to pay advance tax by March 31, as failing to do so could result in incurring interest charges and penalties.

6. Linking PAN with Aadhaar:

Ahead of the deadline, linking one’s Permanent Account Number (PAN) with their Aadhaar card is crucial, as failing to do so might lead to inactivation of the PAN card, leading to further complications with banking and financial transactions.

7. Filing a challan-cum-certificate:

It’s important to submit the challan-cum-certificate for tax deductions in February 2025 under sections such as 194-IA, 194-IB, and others to comply with regulations.

8. Upload a statement of foreign income to claim a foreign tax credit:

Upload the statement of foreign income, along with the tax deducted or paid, to claim the foreign tax credit using Form 67. However, this is contingent upon the timely filing of income tax returns under sections 139(1) or 139(4).

9. Review TDS details in Form 26AS and AIS:

Cross-verify the TDS deducted from your salary or investments by checking Form 26AS and the Annual Information Statement (AIS) to address the discrepancies to avoid issues during the tax filing process.

10. Document submission for HRA and LTA claims:

Claim the House Rent Allowance (HRA) by submitting your rent receipts to your employer before March 31, similarly, for those who have travelled during holidays and want to claim Leave Travel Allowance (LTA), ensure that travel tickets and necessary documents are submitted on time.