The financial year (2024-25) is going to end on March 31. Most of our investment, savings, and tax activities are directly linked to the financial year. Every year, most of us get worried about tax savings and other important financial tasks at the last minute. So, act fast and see which investment and tax-related activities are pending on your end. Completing these financial tasks before March 31 will not only save you on taxes but will also protect you from penalties and unnecessary stress.
Here are 10 important tasks to complete now to wrap up the financial year smoothly and hassle-free.
Take full advantage of tax exemption up to Rs 1.5 lakh (Section 80C)
There are several savings cum investment plans – ELSS mutual funds, PPF, EPF, NSC, tax-saving FDs and more, which can give you tax deduction benefits under Section 80C. Tax deduction benefits can be claimed up to Rs 1.5 lakh by investing in these instruments.
Get additional tax exemption of up to Rs 50,000 in NPS (Section 80CCD)
If you have fully used 80C and want further deduction benefit, NPS allows you to avail additional deduction option of Rs 50,000 under Section 80CCD(1B).
Health insurance – save tax and get protection too! (Section 80D)
Having health insurance is very important in today’s time. Health insurance can help you get tax deduction benefit of up to Rs 75,000 on the policy bought for yourself, family and parents. This will also protect medical expenses and reduce tax.
File updated ITR
If you want to file an updated ITR for FY 2023-24 due to some mistake in it, then it can be corrected till 31 March 2025. If you miss this deadline you might face heavy penalties.
Pay advance tax and avoid penalty
If your total tax liability (excluding TDS) is more than Rs 10,000, then you have to pay advance tax by 31 March. Otherwise you may have to pay interest and penalty.
Forgot to link PAN-Aadhaar? Do it now
If your PAN is not linked to Aadhaar, then get it done before the deadline of 31 March. Otherwise your PAN may become inactive, which will cause problems in banking and financial work.
Invest in 54EC bonds to avoid capital gains tax
If you have recently sold a property and want to avoid long-term capital gains tax, invest up to ₹50 lakh in 54EC bonds of NHAI or REC before March 31.
Check TDS details in Form 26AS and AIS to ensure there is no error
If TDS has been deducted on your salary or investment, then definitely check your Form 26AS and AIS (Annual Information Statement). If there is any error, get it corrected soon so that there is no problem in tax filing.
Submit the necessary documents for claiming HRA and LTA
If you live in a rented house and want to avail the benefit of HRA, then give the rent receipts to your employer before March 31. Similarly, if you have travelled during the holiday and want to avail LTA, submit travel tickets and other documents on time.
Review your investment portfolio – where to invest, where to withdraw?
The month of March is the right time to review your investments. If you want to book profit or avoid long-term capital gains tax, plan now.
