Financial Deadlines You Should Not Miss In March

As the Financial Year 2024-25 ends on March 31, 2025, a number of significant tasks need to be done in time to maximise tax saving, investment, and worry-free financial planning. Delays in these would result in penalties, forfeited tax savings, or maybe lost investments.

Plan Tax-Saving Investments Prior to March 31

For taxpayers who come under the old tax regime, it is essential to invest in tax-saving schemes prior to March 31 to lower taxable income. Investment in securities like Employees' Provident Fund (EPF), Public Provident Fund (PPF), National Pension System (NPS), and Tax-Saving Fixed Deposits (FDs) is eligible for deduction up to Rs 1.5 lakh under Section 80C of the Income Tax Act of 1961. Equity Linked Savings Schemes (ELSS) also offer tax-saving benefits with returns based on market value.

Moreover, Section 80D offers relief on payment of medical insurance premiums, and Section 80G offers relief on donations to charitable organizations. Investment in these schemes prior to the end of the financial year maximizes tax benefits.

New Income Tax Return (ITR-U) Filing Deadline

Those taxpayers who have erred or omitted to report some income in earlier filed returns can file a revised return (ITR-U) on or before March 31, 2025. The Income Tax Department provides an opportunity to rectify tax returns within two years from the concerned assessment year. Otherwise, it will attract additional tax and penalties.

Special Fixed Deposits May End Soon

After the Reserve Bank of India's (RBI) latest 25 basis points (bps) cut in repo rate from 6.50 per cent to 6.25 per cent, a number of banks have started cutting their fixed deposit (FD) rates. Banks have launched special FD schemes with better returns for a limited period during the last two years. With the decline in interest rates, the special FDs might not be renewed further. Investors who want to earn higher interest rates should invest in such FDs before March 31.

UAN Activation for EPF-Linked Insurance

EPF members must activate their Universal Account Number (UAN) to view and manage their provident fund accounts online. The Employees' Deposit Linked Insurance (EDLI) scheme offers EPF members insurance coverage of up to Rs 7 lakh. To avail of this facility, UAN activation must be done by March 15, 2025. Otherwise, there may be a delay in availing of insurance benefits.

Financial Planning for the Next Financial Year

While these financial activities must be done prior to March 31, it is also an appropriate time to review financial objectives. It is possible to review the investments, renew insurance premiums, and determine new objectives for the following year, which helps in managing money more effectively.