Key Financial Tasks for April 2025: New Tax Rules, Investments and ITR Tips

The financial year (FY) in India begins on April 1 and ends on March 31. This means April marks the beginning of FY 2025-26, making it a crucial time to review investments and tax planning. Taking early action can help optimise savings and ensure compliance with new tax laws.

Review New Tax Rules and Plan Taxes Wisely

Revised Tax Slabs for FY 2025-26

With the Finance Act 2025 now in effect, major changes have been introduced in the Income Tax rules. Under the new regime, individuals with an income of up to ₹12 lakh are now eligible for a rebate under Section 87A, up from the previous limit of ₹7 lakh.

This means that if your income is ₹12 lakh or below, you will not have to pay any income tax. Previously, taxpayers earning ₹12 lakh under the new regime would have paid ₹80,000 in taxes. However, even if no tax is due, filing an Income Tax Return (ITR) remains mandatory.

Updated Income Tax Slabs (FY 2025-26)

Choosing between the old and new tax regimes is crucial. If your income is below ₹12 lakh, you may not need tax-saving investments required under the old regime. This provides greater flexibility in financial planning.

Evaluate Your Investments and Portfolio

April is the perfect time to assess your investment portfolio. Reviewing your budget and financial goals helps in identifying unnecessary expenses and making better investment decisions. If needed, seek expert advice to align your investments with your financial objectives.

Submit Form 15G/15H to Avoid TDS Deductions

If your taxable income is below the exemption limit, submit Form 15G (for individuals under 60) or Form 15H (for senior citizens) to prevent unnecessary Tax Deducted at Source (TDS) on your interest income.

Invest Early in PPF and NPS

If you plan to invest in the Public Provident Fund (PPF) or National Pension System (NPS), doing so in early April helps maximise interest earnings. Ensure you have sufficient funds to make a lump sum investment at the start of the financial year.

Start Preparing for Income Tax Return (ITR) Filing

Begin organising tax documents and investment proofs early to avoid last-minute hassles when filing your ITR for FY 2024-25 (AY 2025-26).

• Deadline for regular ITR filing: July 31, 2025
• Belated return deadline: December 31, 2025 (with a late fee)
• Revised return: If you file on time but choose the wrong tax regime, you can submit a revised return before the deadline.

Employees should collect Form 16 from employers (typically available after June 15) and gather records for other income sources like capital gains, rental income, or professional earnings. If you have foreign income, consult a tax professional for proper reporting.

Conclusion

The start of a new financial year is the best time to plan ahead. Reviewing tax rules, adjusting investments, avoiding unnecessary TDS deductions, and organising documents for ITR filing will help you stay financially prepared for FY 2025-26.

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.