This financial year is going to end on 31 March. The date of March 31 is very important. The reason for this is that before this date, taxpayers will have to complete many tasks. Further problems may occur if not completed. Let’s know about the works whose deadline is 31 March.
1. Advance Tax Payment
If your tax liability is more than Rs 10,000 in financial year 2024-25, then you will have to pay the final installment of Advance Tax by March 15, 2025. If you miss payment, then you will have to pay interest to the Income Tax Department under Section 234C. Apart from this, taxpayers will have to pay at least 90 percent of tax liability to the Income Tax Department before March 31, 2025. If you do not do so, you will have to pay additional interest to the Income Tax Department under Section 234B.
2. Tax-Savings for Financial Year 2024-25
If you are using the Old Rizim of Income Tax, then you can do tax-saving under the Chapter Via of the Income Tax Act. For this, you have to make some special payment or investment:
(I) Section 80C: If you invest in investment options under section 80C, then you can claim a deduction of up to Rs 1.50 lakh. 80C includes ELSS, Life Insurance Policy, ULIP, PPF, Sukanya Samriddhi Yojana, NSC, Tax Savings FD etc.
(Ii) Section 80CCD (1B): Investing in NPS, the Income Tax Department allows an additional Rs 50,000 deduction. This is in addition to deduction found under section 80C.
(Iii) Section 80D: Health insurance prevents a sudden economic shock in the event of medical emergency. The Income Tax Department allows a maximum benefit of Rs 1,00,000 on Mediclay. Its limit is like this:
Himself, spouse and dependent Children (under the age of 60): Rs 25,000
Himself, spouse and dependent Children (over 60 years of age): Rs 50,000
One or both of the parents (below 60 years of age): Rs 25,000
One or both of the parents (older than 60 years): Rs 50,000
Apart from the above limit, you can also claim deduction on payment of Rs 5,000 on health checkup.
3. Submit Form 12B
If you are a salary employee and you have changed the job, then for the correct calculations of the current employer’s TDS, you have to submit the income detailed form of income from your old employer in Form 12B. If you do not do this, it can deduct less than actual TDS. Due to this reduction in tax deduction, you may have to pay tax to the Income Tax Department while filing income tax returns.
4. Minimum Deposit in PPF and Sukanya prosperity
If you have opened the PPF account and Sukanya Samriddhi Yojana, then it is necessary to make minimum deposits in both in every financial year. In PPF you have to do the minimum deposit 500. The minimum deposit in Sukanya Samriddhi Yojana is Rs 250. If you do not submit a minimum amount, then your account can be innocent.
5. ITR U for Financial Year 2020-21, 2021-22, 2022-23, 2023-24
If you have forgotten to file an income tax return of financial year 2020-21 to 2023-24 or you have come to know a mistake that you will have to pay tax and rewise ITR, then you have the option to file updated returns in Form ITR U. Through this, you can pay tax on additional income by 31 March, 2025. In the budget 2025, the timeline of filing income tax has been increased to four years, which was the first 2 years.
6. Section-43 B (H)-Micro and Small Enterprises payment from Business Enterprises
Section 43B (H) began in the Finance Act 2023. Under this provision, if there is a payment outstanding to micro and small enterprises, then it is necessary to pay 15 days in case of written agreement and in 45 days if there is a written agreement. Failure to do so will not be allowed for Business Expenditure Alloun during FY2024-25. Business owners have to reconnect their payment to micro and small enterprises and make timely payment to avoid possible damage. If you are a manufacturer or service provider then you can apply for MSME registration. With this, you can take advantage of timely payment from your customers under this section.
If you have not been able to complete any work mentioned above, then you have to complete by 31 March.
7. Tax Los Harvesting
If you have a good gense in financial year 2024-25, then you can do some tax saving. For this, you will have to sell some of your stocks or mutual funds on which you will be losing something. Then you can adjust this loss with your gense. This will reduce your final tax liability. Short Term Capital Los can be set-off with both short and long-term capital gains. However, long -term capital gains can only be adjusted with long -term capital gains.