The financial year 2024-25 is nearing its end, making March 31 a critical deadline for taxpayers. Failing to meet tax-related obligations by this date can result in significant financial losses. Here are the key tasks that taxpayers must complete before the deadline.

Advance Tax Payment

• If your total tax liability exceeds ₹10,000 for the financial year 2024-25, ensure you pay the final installment of advance tax by March 15, 2025.
• Failure to do so will attract interest charges under Section 234C.
• Additionally, taxpayers must settle at least 90% of their tax liability by March 31, 2025, to avoid additional interest under Section 234B.

Tax-Saving Investments Under the Old Regime

If you follow the old tax regime, consider tax-saving investments under:

• Section 80C: ELSS, PPF, NSC, life insurance policies, and tax-saving FDs (up to ₹1.5 lakh deduction).
• Section 80CCD(1B): Additional deduction of ₹50,000 through NPS.
• Section 80D: Health insurance premium deductions (up to ₹1 lakh).

PPF & Sukanya Samriddhi Account Maintenance

• Deposit a minimum of ₹500 in your PPF account and ₹250 in your Sukanya Samriddhi account to keep them active.
• Failure to do so may result in your account becoming inactive.

Filing & Revising Income Tax Returns

• If you haven't filed your ITR for FY 2020-21 or FY 2023-24, or need corrections, you can submit a revised return using ITR-U by March 31, 2025.

MSME Payment Compliance

• As per the Finance Act 2023, businesses must pay Micro & Small Enterprises within a stipulated period:
  • 15 days (if there’s no written agreement).
  • 45 days (if a written agreement exists).
• Failing to meet this deadline may lead to the disallowance of expense claims under business expenditures.

Offset Capital Gains with Losses

• To optimize tax liability, offset gains from stocks and mutual funds against capital losses:
  • Short-term losses can be adjusted against both short-term and long-term gains.
  • Long-term losses can only be adjusted against long-term gains.

Final Takeaway

Completing these tax-related tasks before March 31 is crucial for effective tax management. Meeting the deadlines helps avoid penalties and maximize potential savings through strategic investments and adjustments.