Best Blue Chip Stocks in India in February 2025: TCS, ICICI Bank, Infosys and More – Based on Market Cap

Blue-chip stocks belong to well-established companies with strong finances. They are known for their stability, steady growth, regular dividends, and strong brand value. They are less affected by economic slowdowns, making them a good choice for long-term investors. In this article, we will look at the top blue-chip stocks in India for February 2025, ranked by market capitalisation, 5-year CAGR, and Net profit margin.

Best Blue Chip Stocks In India In February 2025 – Based on Market Cap

Name ↓Market Cap (In ₹ Crore) 5Y CAGR (%) 1Y Return (%) Net Profit Margin (%)
Tata Consultancy Services Ltd 14,85,966.63 14.27 3.32 18.71
ICICI Bank Ltd 8,95,518.06 19.03 23.77 18.75
Infosys Ltd 7,86,499.60 19.24 12.31 16.56
ITC Ltd 5,69,505.50 17.41 9.63 27.78
Bajaj Finance Ltd 5,24,437.50 13.4 27.72 26.28

Note: The top blue chip stocks in India list have been selected from the Nifty 50 universe and sorted based on market capitalisation as of February 05, 2025.

Overview Of Best Blue Chip Stocks In India

1. Tata Consultancy Services

Tata Consultancy Services (TCS) is an Indian global technology company that provides IT services and consulting. TCS is the second-largest Indian company by market value.

In Q3 FY24, the company reported a revenue of ₹53,883 crore, slightly lower than ₹53,990 crore in Q2 FY24. Net profit stood at ₹11,832 crore, down from ₹12,994 crore in the previous quarter.

Key metrics: 

  • Earning per share (EPS):₹133.59
  • Return on equity (ROE): 57.71%

2. ICICI Bank

ICICI Bank is India’s second-largest private sector bank, providing financial services to individuals, small businesses, and corporate clients. It has a wide network of branches, ATMs, and customer service points. Through its subsidiaries and affiliates, the ICICI Group is also active in life and general insurance, housing finance, and investment services.

In Q3 FY24, the company reported a revenue of ₹41,299.82 crore, up from ₹40,537.38 crore in Q2 FY24. Its net profit stood at ₹11,792.42 crore, slightly higher than ₹11,745.88 crore in the previous quarter. 

Key metrics: 

  • EPS: ₹64.18
  • ROE: 17.46%

3. Infosys Limited 

Infosys Limited is a global technology company from India that provides business consulting, IT services, and outsourcing solutions. Established in 1981, it is based in Bengaluru. On August 24, 2021, Infosys became the fourth Indian company to reach a market value of $100 billion.

In Q3 FY24, the company reported revenue of ₹34,915 crore, up from ₹34,257 crore in Q2 FY24. Net profit stood at ₹6,358 crore, compared to ₹6,813 crore in the previous quarter. For FY23-24, total revenue reached ₹1,28,933 crore, with a net profit of ₹27,234 crore.

Key metrics: 

  • EPS: ₹66.03
  • ROE: 33.14%

4. ITC Limited

ITC Limited is a large Indian company based in Kolkata. It operates in six sectors: FMCG, hotels, agriculture, IT, paper products, and packaging. A major part of its revenue comes from tobacco products.

In September 2024, ITC Limited reported a revenue of ₹20,537.35 crore and a net profit of ₹5,078.34 crore. For June 2024, the revenue was ₹18,219.74 crore, with a net profit of ₹4,917.45 crore.

Key metrics: 

  • EPS: ₹16.46
  • ROE: 28.22%

5. Bajaj Finance Limited

Bajaj Finance Limited is a non-banking financial company based in Pune that accepts deposits. As of June 2024, it has 88.11 million customers and manages assets worth ₹354,192 crore.

In the quarter ending December 2024, the company reported a revenue of ₹15,371.02 crore and a net profit of ₹3,705.81 crore. This compares to a revenue of ₹14,487.43 crore and a net profit of ₹5,613.71 crore in September 2024.

Key metrics: 

  • EPS: ₹260.47
  • ROE: 20.35%

Best Blue Chip Stocks In India In February 2025 – Based on 5-Year CAGR

Name Market Cap (In ₹ Crore) ↓5Y CAGR (%) 1Y Return (%) Net Profit Margin (%)
Sun Pharmaceutical Industries Ltd 4,23,542.61 32.91 20.19 19.2
Cipla Ltd 1,17,027.31 26.44 1.05 15.54
Shriram Finance Ltd 1,08,445.95 23.04 22.4 20.23
Bajaj Auto Limited 2,48,857.62 23.02 16.61 16.55
Power Grid Corporation of India Ltd 2,65,671.75 21.18 0.83 33.13

Note: The top blue chip stocks in India list have been selected from the Nifty 50 universe and sorted based on 5-year CAGR as of February 05, 2025.

 

Best Blue Chip Stocks In India In February 2025 – Based on Net Profit Margin

Name Market Cap (In ₹ Crore) 5Y CAGR (%) 1Y Return (%) ↓Net Profit Margin (%)
Power Grid Corporation of India Ltd 2,65,671.75 21.18 0.83 33.13
ITC Ltd 5,69,505.50 17.41 9.63 27.78
Bajaj Finance Ltd 5,24,437.50 13.4 27.72 26.28
Shriram Finance Ltd 1,08,445.95 23.04 22.4 20.23
Dr Reddy’s Laboratories Ltd 1,01,636.59 13.48 0.09 19.29

Note: The top blue chip stocks in India list have been selected from the Nifty 50 universe and sorted based on net profit margin as of February 05, 2025.

What Are Blue-Chip Stocks in India?

Blue-chip stocks are shares of large, well-established companies with a strong track record of financial stability. These companies, listed on the National Stock Exchange (NSE), can handle market ups and downs better than smaller firms.

Key Features of Blue-Chip Stocks

  • Steady Returns

Blue-chip stocks provide stable returns, though they may not grow as fast as small or mid-cap stocks. They help investors reduce risk and maintain a balanced portfolio.

  • Regular Dividends

Many blue-chip companies share their profits with investors through dividends. While the amount may change based on company performance, dividends offer a steady income.

  • Lower Risk

These companies are financially strong, well-managed, and usually carry little debt. As a result, their stock prices are less volatile and tend to perform better during economic downturns.

  • Best for Long-Term Investors

Blue-chip stocks are a good choice for investors looking for long-term stability and gradual growth.

Risks of Investing in Blue-Chip Stocks

  • Slower Growth

Since these companies are already well-established, they may not grow as quickly as newer or smaller companies. While they offer stability, they provide fewer chances for quick profits.

  • High Valuation

Because blue-chip stocks are considered safe investments, their prices can sometimes be too high. Buying at an overvalued price may reduce future returns and increase risks if the market corrects.

Conclusion

Blue-chip stocks are a great option for conservative investors looking for stable returns and regular dividends. They offer safety during market fluctuations but are not completely risk-free. To minimise risk, investors should diversify their portfolios by including a mix of different types of stocks.

 

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 securities market are subject to market risks, read all the related documents carefully before investing.

Closing Bell: Sensex Falls 313 pts, Nifty at 23,696; Smallcaps Shine on February 05, 2025

The Indian stock market had a mixed trading session on February 5, with benchmark indices closing in the red. The BSE Sensex dropped 312.53 points (0.40%), ending at 78,271.28. It moved between a high of 78,735.41 and a low of 78,226.26 during the day.

Similarly, the NSE Nifty50 fell 42.95 points (0.18%) to settle at 23,696.30, trading within a range of 23,807.30 (high) and 23,680.45 (low).

Top Gainers and Losers

Out of the 50 Nifty stocks, 25 ended in the red. The biggest losers included Asian Paints, Titan, Nestle India, Britannia Industries, and Tata Consumer, which saw losses of up to 3.40%. On the other hand, ONGC, Hindalco, Apollo Hospitals, and BPCL were among the gainers, rising up to 2.90%.

While large-cap stocks struggled, small-cap stocks outperformed. The Nifty Smallcap100 index jumped 1.85%, while the Nifty Midcap100 index gained 0.68%.

Sectoral Performance

Most sectoral indices on the NSE closed higher, except for Nifty FMCG, Realty, Auto, and Consumer Durables, which lost up to 1.85%. The Nifty PSU Bank, Metal, OMCs, and Media indices saw strong gains, each rising over 1%.

Oil Prices

As of February 05, 2025, at 03:37 PM, Brent Crude was trading at $75.76, down by 0.58%.

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.

 

MTNL Shares Surge 20%: What’s Behind the Rally?

Mahanagar Telephone Nigam Ltd (MTNL) share price saw a sharp rise of 20% in its share price, reaching the upper circuit limit of ₹57.16 on the BSE on February 5. This surge follows a 6% gain in the previous session. The stock opened at ₹54, up from its last close of ₹47.64, and peaked at ₹57.16 during intraday trading. Around 12:10 PM, it was trading 17.74% higher at ₹56.09.

Over the past 5 days, MTNL share price has gained 26.34%, while in the last month, it rose by 16.68%. Over the past year, the stock has increased by 13.99%, and in the last 5 years, it has surged an impressive 400.53%.

Why Is MTNL Share Price Rising?

  • Government Plans to Support MTNL

The recent rally in MTNL shares coincides with announcements from Finance Minister Nirmala Sitharaman regarding broadband connectivity for government secondary schools and healthcare centres under the ‘Bharat Net’ project. Additionally, reports suggest that the government may allow MTNL and BSNL to monetise their assets, potentially boosting their financial health.

  • MTNL’s Financial Recovery and Rating Update

MTNL’s stock had dropped to ₹41.40 on January 28, 2025, and is still down 59% from its 52-week high of ₹101.88, reached in July 2024. However, in December 2024, CARE Ratings upgraded MTNL’s debt rating to ‘CARE AAA’ with a stable outlook, reflecting sustained government support.

  • Revival Plans and Future Outlook

MTNL is a ‘Navratna’ status company, offering it more operational freedom. The government’s revival plan for MTNL and BSNL, worth ₹1.64 trillion, focuses on upgrading services, expanding telecom networks, and supporting their financial viability. While asset monetisation progress has been slow, the government continues to back MTNL’s operations and financial needs.

About Mahanagar Telephone Nigam Limited

Mahanagar Telephone Nigam Limited (MTNL), a fully owned subsidiary of Bharat Sanchar Nigam Limited (BSNL), is based in New Delhi, India. It offers telecom services in the metro cities of Mumbai and New Delhi, as well as in Mauritius, Africa.

 

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.

S&P 500 or Nasdaq 100? Best ETFs for Investing in the US Stock Market

In the last 12 months, the Nifty 50 has declined by about 7%, while the S&P 500 has surged nearly 24%. Additionally, the Indian Rupee’s depreciation against the US Dollar has boosted returns for Indian investors investing in US stocks.

A great way to invest in the US market from India is through Exchange-Traded Funds (ETFs). These funds offer a mix of index fund benefits and stock trading flexibility, allowing investors to track major indices at lower costs.

ETFs for Exposure to the US Market

S&P 500 Index ETF

The S&P 500 index tracks the top 500 US companies, covering nearly 80% of the US stock market. Investing in an S&P 500 ETF provides a low-cost, highly liquid way to diversify with large US stocks instead of picking individual companies.

Top stocks in S&P 500: Apple, NVIDIA, Microsoft, Amazon, Meta, Alphabet, Tesla, and Berkshire Hathaway.

Some popular S&P 500 ETFs with low expenses and good returns include:

  • SPDR S&P 500 ETF Trust (SPY)
  • Vanguard S&P 500 ETF (VOO)
  • iShares Core S&P 500 ETF (IVV)
  • SPDR Portfolio S&P 500 ETF (SPLG)
  • Invesco S&P 500 Equal Weight ETF (RSP)

The SPDR S&P 500 ETF (SPY) is the world’s oldest and largest ETF, with an expense ratio of just 0.0945%, making it an attractive long-term investment.

Nasdaq 100 ETF

The Nasdaq 100 is the top benchmark index for tech stocks, including major global tech giants such as Nvidia, Apple, Amazon, Meta (Facebook), Alphabet (Google), and Tesla.

Investors can gain exposure to these tech stocks through the Invesco QQQ ETF, which has an annual expense ratio of 0.20%. This ETF is ideal for those looking to invest in global technology leaders.

Dow Jones Industrial Average (DJIA) ETF

The DJIA (Dow Jones Industrial Average), or Dow 30, represents 30 leading US companies and is a key indicator of the US economy and consumer trends.

The SPDR Dow Jones Industrial Average ETF Trust (DIA) allows investors to replicate the Dow’s performance, making it a solid choice for those looking to invest in established US companies.

Why Consider US ETFs?

Diversification is important for any investment strategy, especially in global markets. The US economy remains the world’s largest, and investing in ETFs allows investors to benefit from its growth.

Before investing in ETFs, it’s important to check factors such as:

  •  Expense Ratio
  •  Long-term Performance
  •  Liquidity
  •  Tracking Error
  •  Price-to-NAV Difference
  •  Dividend Yield

By carefully selecting ETFs, investors can gain exposure to the US stock market with lower costs and reduced risk while benefiting from global economic trends.

 

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.

 

Nestlé to Launch Starbucks Ready-to-Drink Coffee in India

Nestlé S.A., the world’s largest coffee company, is considering launching Starbucks-branded ready-to-drink (RTD) coffee in India’s retail market, as per a report. This move is part of Nestlé’s global partnership with Starbucks Corporation, allowing it to sell Starbucks’ packaged coffee and beverages outside of its cafes.

Axel Touzet, head of Nestlé’s Coffee Strategic Business Unit, stated that the company is continuously looking for opportunities to expand its coffee portfolio in India. He highlighted the rising coffee consumption trend in the country and Nestlé’s efforts to cater to different coffee moments for Indian consumers.

Expansion of the Nestlé-Starbucks Partnership

In 2018, Nestlé and Starbucks signed a global agreement that gave Nestlé the right to sell Starbucks’ packaged coffee and food service products in retail stores worldwide. Later, the partnership expanded to include RTD coffee products like Starbucks Frappuccinos and Doubleshots in Southeast Asia, Oceania, and Latin America. Now, Nestlé is considering a similar launch in India.

Rising Coffee Consumption in India

Though India has traditionally been a tea-drinking nation, coffee consumption is increasing, particularly in urban areas. Nestlé’s Nescafé brand has introduced coffee to over 30 million Indian households, while Starbucks has expanded its presence through a joint venture with Tata, operating over 470 stores in India. In FY24, Starbucks-Tata recorded a revenue of ₹1,218.06 crore, reflecting a 12% growth from the previous year.

India’s Coffee Market: A Key Growth Area

India remains a crucial market for Nestlé’s coffee business. In the December 2023 quarter, the company’s powdered and liquid beverages segment contributed the most to its growth, with retail sales surpassing ₹2,000 crore in the past year. Nestlé recently introduced its premium coffee brand, Nespresso, in India, targeting the rising demand for high-quality coffee products.

A report by ResearchAndMarkets.com projects that the global RTD tea and coffee market will grow from $107.18 billion in 2023 to $197.4 billion by 2032. The Asia-Pacific region is leading this trend, with India emerging as a key market.

What’s Next?

Nestlé has not yet announced a launch date for Starbucks RTD coffee in India but sees significant potential in the market. Touzet emphasised that India is a strategic focus for Nestlé, and distributing Starbucks coffee outside cafes is a vital part of their expansion plans.

 

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.

IRB Infra Declares ₹0.10 Interim Dividend; Record Date on February 6

IRB Infrastructure declared a third interim dividend of ₹0.10 per equity share (10% of the face value of ₹1 each) for FY25. The record date for dividend payment is February 6, 2025, and eligible shareholders will receive payments by March 1, 2025. This brings the total dividend payout for the first nine months of FY25 to ₹181.1 crore.

Understanding the Ex-Date and Record Date

The ex-date is when a company’s stock starts trading without eligibility for dividends or stock splits. To receive these benefits, investors must purchase the stock before this date. The final list of eligible shareholders is determined at the end of the record date.

Financial Highlights

IRB Infrastructure Developers Ltd reported a 2.9% year-on-year (YoY) increase in revenue for Q3FY25, reaching ₹2,025.4 crore. In the same quarter last year, the company’s revenue stood at ₹1,968.5 crore. The company’s EBITDA grew by 13.2% to ₹984.1 crore in Q3FY25, compared to ₹869.2 crore in Q3FY24. The EBITDA margin also improved, rising to 48.6% from 44.2% in the previous year’s quarter.

About IRB Infrastructure Developers Ltd

IRB Infrastructure Developers is an Indian company specialising in infrastructure development and construction. It has vast experience in building roads and highways. The company is also involved in other areas of infrastructure, such as road maintenance, construction projects, airport development, and real estate.

As of February 5, 11:21 AM IST, IRB Infrastructure Developers share price is trading at ₹54.53, up ₹0.27 (0.50%) for the day. The stock opened at ₹54.30, reached a high of ₹55.15, and touched a low of ₹54.15. Over the past year, it recorded a 52-week high of ₹78.15 and a 52-week low of ₹45.06. The company’s market capitalisation stands at ₹33,000 crore, with a P/E ratio of 5.10 and a dividend yield of 0.69%.

 

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.

 

Asian Paints Share Price Drops as Q3 FY25 Net Profit Falls 23.3% to ₹1,110 Crore

Asian Paints reported a 23.3% drop in net profit for Q3FY25, bringing it down to ₹1,110 crore. The company’s net sales fell 6.1% year-on-year to ₹8,522 crore, mainly due to weak demand, downtrading, and a lackluster festive season.

Performance Across Business Segments

  • Decorative Paints (India): Volumes grew 1.6%, but overall sales declined due to sluggish urban demand.
  • Industrial Business: Grew 3.8%, driven by general industrial and refinish segments.
  • International Business: Revenue increased 5% in rupee terms and 17.1% on a constant currency basis, led by strong growth in the Middle East and improving economic conditions in key Asian markets.
  • Home Decor: Benefited from network expansion efforts.

Drop in PBIDT and Operating Margins

The company’s Profit Before Interest, Depreciation, and Tax (PBIDT) fell 18.4% to ₹1,830 crore. Operating margins were affected by higher sales and distribution costs and an unfavourable product mix, despite some sequential improvement.

Management’s View on Demand and Future Plans

CEO & MD Amit Syngle noted that weak urban demand led to a 6.6% decline in the overall coatings business in India. He added that while domestic decorative paint volumes grew 1.6%, revenue declined 7.5% due to weak festive demand.

Looking ahead, the company remains cautiously optimistic about demand recovery and will continue investing in its brand, innovation, and customer-focused initiatives.

About Asian Paints Ltd

Asian Paints Ltd is an Indian multinational company based in Mumbai. It specialises in manufacturing, selling, and distributing paints, coatings, and home décor products, including bath fittings, while also offering related services.

As of February 5, 11:04 AM IST, Asian Paints share price is trading at ₹2,267.90, down ₹86.45 (3.67%) for the day. The stock opened at ₹2,269.00, reached a high of ₹2,276.45, and touched a low of ₹2,237.25. Over the past year, the stock hit a 52-week high of ₹3,394.90 and a 52-week low of ₹2,207.80.

 

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.

 

Tata Power Share Price Rises Over 2% After Q3 FY25 Net Profit Climbs 8%

Tata Power reported an 8.2% increase in its consolidated net profit for Q3FY25, reaching ₹1,030.7 crore, compared to ₹953 crore in the same quarter last year. This rise was driven by improved business performance.

Revenue and PBDIT Performance

  • Revenue grew 5% year-on-year to ₹15,391.1 crore.
  • Profit Before Depreciation, Interest, and Tax (PBDIT) saw an 81% jump to ₹3,667.6 crore.
  • Sequentially, net profit rose 11%, while revenue declined 2%.

CEO’s Comments on Growth

Praveer Sinha, CEO & MD of Tata Power, highlighted that the company has maintained a consistent profit growth for 21 quarters and credited contributions from all business segments.

Sinha acknowledged the Budget 2025 announcement on small modular reactors (SMRs) as a positive step. Tata Power is keen to explore opportunities in this space but awaits further clarity.

Capital Expenditure Plans

Tata Power has a ₹60,000 crore capex plan for upcoming years. Key investments include:

  • ₹12,000 crore spent in FY24
  • ₹22,000 crore planned for FY25
  • ₹22,000 crore set aside for FY26

Hydropower Expansion in Bhutan

Tata Power is considering another hydropower project in Bhutan but has not disclosed details. In November 2024, the company announced a strategic partnership with Druk Green Power Corporation Ltd (DGPC) to develop at least 5,000 MW of clean energy capacity in Bhutan.

About Tata Power Company Ltd

Tata Power Company Ltd generates, transmits, and distributes electricity. It focuses on producing power entirely from renewable sources. The company also makes solar roofs and aims to set up 1 lakh EV charging stations by 2025. The company is India’s largest integrated power company.

As of February 5, 10:47 AM IST, Tata Power share price is trading at ₹368.95, up ₹6.90 (1.91%) for the day. The stock opened at ₹366.45, reached a high of ₹375.00, and touched a low of ₹362.50.

 

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.

Budget 2025: Filing Updated Tax Returns Now Allowed for 4 Years: Key Points to Know

The government has extended the time limit for filing updated tax returns from 2 years to 4 years, allowing taxpayers more flexibility to correct errors in their filings.

What is an Updated Tax Return?

The updated return facility, introduced in 2022, lets taxpayers voluntarily correct mistakes or omissions in their original or belated tax returns. This initiative is based on trust in taxpayers, and so far, nearly 9 million people have used it to report accurate incomes.

New Changes in Budget 2025

Finance Minister Nirmala Sitharaman, in her Budget 2025 speech, announced an extension of the deadline for filing updated returns from 2 years to 4 years. The Finance Bill 2025 amends Section 139(8A) of the Income Tax Act, 1961, increasing the time window for updating returns to 48 months from the relevant assessment year.

Higher Additional Tax for Late Filings

Though taxpayers now get extra time, filing an updated return after 24 months comes with higher additional tax rates:

  • 60% additional tax for returns filed between 24-36 months.
  • 70% additional tax for returns filed between 36-48 months.

If a taxpayer receives a Section 148A show-cause notice after 36 months, they may be barred from filing a belated return unless the tax authorities allow it.

When Can You File an Updated Return?

Taxpayers can submit an updated return in cases such as:

  • Missing the due date for filing a return.
  • Incorrect declaration of income.
  • Selecting the wrong head of income.
  • Paying tax at the wrong rate.
  • Reducing carried-forward losses.
  • Reducing unabsorbed depreciation.
  • Adjusting tax credit under Sections 115JB/115JC.

Why You Should File Early

Experts advise taxpayers not to wait for the full 4-year period to update their returns. The longer you delay, the higher the penalty in the form of additional tax and interest. Filing early will help reduce extra costs and avoid compliance risks.

 

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.

Budget 2025: EPF and NPS – Big Tax Savings for Salaried Individuals

Finance Minister Nirmala Sitharaman has introduced tax benefits in Budget 2025, bringing relief to the middle class. The rebate limit under the New Tax Regime (NTR) has been increased from ₹7 lakh to ₹12 lakh, along with revised tax slabs that benefit higher-income earners. Now, individuals earning up to ₹12 lakh annually will not have to pay any tax after factoring in the Standard Deduction of ₹75,000 and the revised tax rebate of ₹60,000.

However, to maximise tax savings, employees must continue investing in the Employees’ Provident Fund (EPF) and National Pension System (NPS). Here’s how these schemes help reduce tax liability:

National Pension System (NPS)

Salaried individuals can earn up to ₹13.7 lakh tax-free per year—higher than the ₹12 lakh limit for others—thanks to NPS benefits. The key change in Budget 2025 is the increase in tax deduction under Section 80CCD(2). Employees can now claim a deduction of up to 14% of their basic salary on NPS contributions, up from 10% in the Old Tax Regime.

For example, an individual earning ₹13.7 lakh annually with a basic salary of ₹6.85 lakh can invest 14% of their basic pay in NPS, amounting to ₹95,900. Along with the standard deduction of ₹75,000, their taxable income becomes zero.

This benefit, however, applies only if the employer includes NPS in the salary package. Employees cannot choose this deduction separately.

Additional Benefits of NPS:

  • Flexible asset allocation and fund switching without tax implications.
  • The lowest fund management fees are 0.09% per year, compared to 1-1.5% for mutual funds.
  • Historically, NPS funds have outperformed mutual funds in the same category.

Employees’ Provident Fund (EPF)

For salaried employees, EPF is a great way to save for retirement, provided they do not withdraw funds prematurely when switching jobs. Those with a basic salary of ₹15,000 or more have the option to not enroll in EPF when joining a company. However, once enrolled, opting out is not allowed during employment.

Key Benefits of EPF:

  • Guaranteed returns with an attractive 8.25% interest rate.
  • Employees can voluntarily contribute more through the Voluntary Provident Fund (VPF), earning the same interest rate.
  • EPF withdrawals after retirement remain tax-free.

EPF and Taxation Under the New Tax Regime

While EPF is partially EEE (Exempt-Exempt-Exempt) under the new regime, employee contributions no longer qualify for tax deductions. However, the following tax benefits still apply:

  • Employer contributions up to 12% of salary remain tax-free.
  • The combined employer contribution to PF and NPS is tax-free, up to ₹7.5 lakh per year.
  • Returns on employee contributions beyond ₹2.5 lakh per year are taxable.

By strategically investing in NPS and EPF, salaried individuals can reduce tax liability while building a strong retirement corpus.

 

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.