Complete Essential Tax-Saving Tasks Before March 31st. Save taxes by investing in Health Insurance, 80C investments, 54EC Bonds, and NPS. Also, ensure you update your ITR and check Form 26AS.
Tax-Saving: The financial year 2024-25 will end on March 31, 2025, and the new financial year 2025-26 will begin on April 1, 2025. During this time, many people forget to complete important tax-related tasks, which can lead to additional tax liabilities. You have only a few days left for tax saving. Let's understand how you can save taxes and what tasks are essential at this last opportunity.
Important Measures to Save Tax
1. Tax Saving through Health Insurance
Taking health insurance not only provides medical protection but is also an excellent tax-saving option. Under Section 80D of the Income Tax Act, you can save tax up to ₹75,000. This includes health insurance for self, family, and parents. Through this, you can avoid unexpected medical expenses.
2. Invest in 54EC Bonds to Avoid Capital Gains Tax
If you want to reduce your capital gains tax, 54EC bonds are a good option. By investing in these bonds, you can get tax exemption up to ₹50 lakh. The deadline for investing in NHAI and REC's 54EC bonds is March 31, 2025.
3. Invest in Tax-Saving Schemes
Various investment schemes are available to save tax. You can get tax exemption up to ₹1.5 lakh by investing in various Post Office schemes, NSCs, Fixed Deposits (FDs), ELSS Mutual Funds, and PPF. All these investments fall under Section 80C of the Income Tax Act.
4. Additional Tax Benefits from Investing in NPS
If you have already availed the tax benefit of up to ₹1.5 lakh under Section 80C, you can also get an additional tax deduction of ₹50,000 by investing in the National Pension System (NPS). This will help in securing your future as well as saving taxes.
Complete these essential tasks before March 31st
1. Update ITR
If you have made any mistakes while filing your Income Tax Return (ITR), the last chance to update it is until March 31, 2025. If the correction is not made by this date, you may have to pay a penalty and interest.
2. Check Form 26AS and AIS
If TDS has been deducted on your income or investments, you should check Form 26AS and Annual Information Statement (AIS). If any errors are found, the time to rectify them is until March 31st.
3. Review your investments
This is the right time to review your investment portfolio and see where you are making profits or losses. Also, take necessary steps to reduce capital gains tax.
