Don't Miss These Deadline: Key Financial Decisions To Make Before March 31
The financial year 2024-25 is almost over, and there are just a few days left—until March 31—to sort out any pending money matters. This is the time to review your finances, maximise tax-saving investments, and make sure you're on track with the latest tax rules. Since the new tax regime is now the default, it’s also worth checking which option works best for you. To make things easier, here’s a simple checklist to help you save more, avoid last-minute hassles, and start the new financial year stress-free. Choose your tax regime The new tax regime, now the default, does not offer most tax-saving deductions. Thus, you must compare your tax liability under both the old and new regimes and choose the one that does the most to minimise your tax burden. Maximise tax-saving investments (Sec 80C, 80D, etc.) If you’ve chosen the old regime, ensure you’ve used your Rs 1.5 lakh limit under Sec 80C. This includes investments like tax-saving FDs, PPF, ELSS, EPF, and NSC. If you have a home loan, you can claim deductions up to Rs 1.5 lakh on principal payment (Sec 80C), and up to Rs 2 lakh on home loan interest (Sec 24 (b). If you’ve invested in NPS, claim the Rs 50,000 additional deduction under Sec 80CCD (1B), if applicable. Check if you qualify for deductions for health insurance premiums–Rs 25,000 for self/family, and Rs 50,000 for senior citizen parents under Sec 80D. File pending tax declarations with your employer March 31 is the deadline to submit deductions, investment proofs, and HRA rent receipts to avoid excess TDS deductions. But, if you miss this deadline, you can still claim refunds when filing your income tax return (ITR). Update advance tax payments If you have additional income from freelancing, rent, or stock gains, make sure your advance tax payments are up to date to avoid penalties. Contribute to your PPF or NPS If you have investments like PPF or NPS that require a minimum annual deposit, make sure you do this before March 31 to keep your account active and maximise returns. Review & rebalance investments The end of the financial year is the right time to review your investments like mutual funds, stocks, and fixed deposits, and rebalance if needed. To avoid unnecessary charges, close any inactive bank or demat accounts. Also Read : Travel Credit Cards Promise Perks And Free Upgrades, But Here's What They Don't Tell You Check and use expiring benefits Check for credit card reward points, health insurance benefits, or employer reimbursements like LTA, meal vouchers, etc., that may be set to expire at the end of the financial year. PAN-Aadhaar linking and KYC updates Link your PAN with your Aadhaar to prevent it from becoming inoperative. Also, check and update your KYC details for any investments or accounts for uninterrupted access. Plan for the new financial year Planning for the next year can give you better control of your money and maximise your benefits. It will also help you avoid the last-minute rush and stress of making hasty financial decisions. When it comes to financial planning, some extra effort can go a long way to ensure you have a smoother start to the new year. (The author is the Senior Manager-Communications at BankBazaar.com. This article has been published as part of a special arrangement with BankBazaar)
The financial year 2024-25 is almost over, and there are just a few days left—until March 31—to sort out any pending money matters. This is the time to review your finances, maximise tax-saving investments, and make sure you're on track with the latest tax rules. Since the new tax regime is now the default, it’s also worth checking which option works best for you. To make things easier, here’s a simple checklist to help you save more, avoid last-minute hassles, and start the new financial year stress-free.
Choose your tax regime
The new tax regime, now the default, does not offer most tax-saving deductions. Thus, you must compare your tax liability under both the old and new regimes and choose the one that does the most to minimise your tax burden.
Maximise tax-saving investments (Sec 80C, 80D, etc.)
- If you’ve chosen the old regime, ensure you’ve used your Rs 1.5 lakh limit under Sec 80C. This includes investments like tax-saving FDs, PPF, ELSS, EPF, and NSC.
- If you have a home loan, you can claim deductions up to Rs 1.5 lakh on principal payment (Sec 80C), and up to Rs 2 lakh on home loan interest (Sec 24 (b).
- If you’ve invested in NPS, claim the Rs 50,000 additional deduction under Sec 80CCD (1B), if applicable.
- Check if you qualify for deductions for health insurance premiums–Rs 25,000 for self/family, and Rs 50,000 for senior citizen parents under Sec 80D.
File pending tax declarations with your employer
March 31 is the deadline to submit deductions, investment proofs, and HRA rent receipts to avoid excess TDS deductions. But, if you miss this deadline, you can still claim refunds when filing your income tax return (ITR).
Update advance tax payments
If you have additional income from freelancing, rent, or stock gains, make sure your advance tax payments are up to date to avoid penalties.
Contribute to your PPF or NPS
If you have investments like PPF or NPS that require a minimum annual deposit, make sure you do this before March 31 to keep your account active and maximise returns.
Review & rebalance investments
The end of the financial year is the right time to review your investments like mutual funds, stocks, and fixed deposits, and rebalance if needed. To avoid unnecessary charges, close any inactive bank or demat accounts.
Also Read : Travel Credit Cards Promise Perks And Free Upgrades, But Here's What They Don't Tell You
Check and use expiring benefits
Check for credit card reward points, health insurance benefits, or employer reimbursements like LTA, meal vouchers, etc., that may be set to expire at the end of the financial year.
PAN-Aadhaar linking and KYC updates
Link your PAN with your Aadhaar to prevent it from becoming inoperative. Also, check and update your KYC details for any investments or accounts for uninterrupted access.
Plan for the new financial year
Planning for the next year can give you better control of your money and maximise your benefits. It will also help you avoid the last-minute rush and stress of making hasty financial decisions.
When it comes to financial planning, some extra effort can go a long way to ensure you have a smoother start to the new year.
(The author is the Senior Manager-Communications at BankBazaar.com. This article has been published as part of a special arrangement with BankBazaar)
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