Outlook Money
The financial year ends in March, but December 31 is a critical tax-planning checkpoint. Many tax-saving actions must be planned early to avoid last-minute rush and stress.
Salaried employees must submit Form 12BB to employers with proof of rent paid, home loan interest, and deductions under Sections 80C, 80D, and other eligible sections.
Use the full Rs 1.5 lakh Section 80C limit through ELSS, PPF, tax-saving FDs, NSC, tuition fees, home loan principal repayment, or life insurance premiums.
Investing in the National Pension System offers an additional ₹50,000 deduction under Section 80CCD(1B), reducing tax liability while building retirement savings.
Ensure rent receipts are updated, a valid rent agreement is available, and landlord PAN is provided if annual rent exceeds ₹1 lakh to avoid HRA disallowance.
Claim health insurance deductions under Section 80D and home loan interest deductions up to Rs 2 lakh under Section 24(b). Collect certificates early for accurate claims.
Year-end tax planning strengthens financial discipline. Organise proofs, review investments, and plan before December 31, 2025 for stress-free filing and more savings.