Guide for Taxpayers: Things to Do Before 31st March 2025

As the financial year comes to a close, taxpayers must ensure they have completed essential tax-saving steps before March 31, 2025. Proper planning can help maximise deductions, avoid penalties, and streamline tax compliance. Here’s a checklist of key actions to take before the deadline.

Invest in Tax-Saving Instruments

Under Section 80C of the Income Tax Act, taxpayers can claim deductions of up to ₹1.5 lakh by investing in approved financial instruments. Some popular options include:

• Employee Provident Fund (EPF): Employees can contribute up to 12% of their basic salary towards EPF, which helps in long-term wealth accumulation and provides tax benefits.
• Public Provident Fund (PPF): A government-backed savings scheme offering a secure investment with competitive interest rates (around 8%). It allows partial withdrawals after 7 years.
• Equity Linked Savings Schemes (ELSS): Market-linked investment with a 3-year lock-in period, offering the potential for capital appreciation along with tax savings.

These investments collectively help in reducing taxable income while building a financially secure future.

Unlock Tax Savings with Government Schemes

The government offers various tax-efficient saving schemes tailored to different financial goals:

• Senior Citizen Savings Scheme (SCSS): Designed for individuals aged 60 and above, this scheme provides higher interest rates and tax benefits.
• Sukanya Samriddhi Yojana (SSY): A scheme aimed at securing the financial future of a girl child, offering attractive returns and tax exemptions.
• National Pension System (NPS): A retirement-focused savings scheme that allows deductions under Section 80C and additional tax benefits under Section 80CCD(1B) for contributions up to ₹50,000.

Meet Minimum Investment Requirements

Some government savings schemes, like the Public Provident Fund and Sukanya Samriddhi Yojana, require a minimum annual investment to keep the account active. Failing to meet this requirement before March 31, 2025, could lead to penalties or account deactivation.

Making timely contributions ensures that accounts remain operational and penalties are avoided.

Pay the Fourth Installment of Advance Tax

For taxpayers liable to pay advance tax, the fourth instalment is due by March 15, 2025. Missing this deadline could result in penal interest under Sections 234B and 234C of the Income Tax Act.

Individuals with substantial income from sources like business, rent, or capital gains should ensure they have cleared their advance tax liabilities to avoid unnecessary penalties.

Conclusion

With the financial year-end approaching, taking these steps will help taxpayers optimise savings, meet legal requirements, and ensure smooth tax compliance. Reviewing investments, fulfilling minimum deposit requirements, and paying advance tax on time will make the tax filing process easier while securing financial benefits.

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.