As the March 31 deadline for advance tax payments approaches, taxpayers need to start thinking about making payments to avoid penalties and make tax-saving maximisations.

Here is everything you should know before the due date, including deduciton under section 80C and the receiving rent rules:

WHY LATE PAYMENTS GATHER MORE SCRUTINY?

March 31, 2025 is the final date for paying the required advance tax as well as paying the necessary income tax for the financial year. Mark this date, as if you forget, there could be penalties and interest surcharges through 234B and 234C. Also, you would have an increased risk of being audited by the Income Tax Department.
 

Advance tax refers to people who, after TDS deductions, have a tax liability greater than ten thousand each year. It is done in four different instalments, and the last date is March 31.

Poorly paid salary employees who have other sources of income such as capital and rent along with paying generous dividends need to pay these on time, or else they will be troubled at the last moment.

REDUCE COSTS BEFORE DEADLINE

Utilise 80C tax deductions

The Government permits a maximum tax-saving investment of Rs 1.5 Lakhs under 80 C. If you have not utilised this claim fully yet, consider investing in:

• Public Provident Fund (PPF)
• Employees’ Provident Fund (EPF)
• Life Insurance Premiums
• Equity-Linked Savings Scheme (ELSS)
• National Savings Certificate (NSC)

By marhcing the investments before March 31, you greatly reduce the income that will be taxed.

CLAIMING HOUSE RENT ALLOWENCE (HRA)
 

Employees that are earning are also able to deduct their House Rent Allowance (HRA). In doing so, there are some common mistakes regarding their rent receipts. Make Sure That:

• The rent receipts correspond to the amounts paid to the landlord.
• If the total amount of rent exceeds Rs 1 lakh per year, then the Landlords PAN details must be provided.
• Payments are done via traceable payment methods(bank transfer, UPI, cheque) rather than cash.
• You can be sure that getting fake receipts can potentially add you to an income tax department's list which then cross-check rent payments against tax returns.