Income Tax Deadline: Essential Financial Tasks to Complete by March 31 For ITR Season 2025

As financial year 2024-25 nears its end, the ITR season 2025 will start from April. Here’s a list of key tasks that taxpayers and individuals should do before the financial year 2025-26 kicks off from tomorrow, April 1.

Mumbai-based chartered accountant Suresh Surana reiterates essential tasks that have to be completed before March 31.

1.Taking full advantage of deductions from 80C-80U

Before the commencement of the new financial year, taxpayers who have opted for the old tax regime, should take benefits under sections like 80C, 80D, 80G to reduce their taxable income. Here’s a list of deductions.

* Section 80C: This section offers deductions up to ₹1.5 lakh for investments like PPF, ELSS mutual funds, life insurance premiums, principal repayment on housing loan, NSC, tuition fees, five-year fixed deposits, etc.

* Section 80D: This section offers deductions up to ₹25,000 for health insurance premiums for taxpayers, their spouse, children, and parents (enhanced deduction of ₹50,000 for senior citizens).

* Section 80G: This section deals with donations made to charitable organisations.

* Section 80CCD(1B): This section offers deduction up to ₹50,000 on contributions made towards the National Pension Scheme.

2. Submission of relevant documents

Salaried employees should submit all the necessary documents related to eligible deductions to their employer before the cut-off date (as per company policy) or financial year-end (March 31). This is being done to ensure that deductions are calculated accurately.

3. Adjustment of TDS/Tax Deductions

If any taxpayer reports changes in their income, deductions, or exemptions towards the end of the financial year, they should report the matter to their employer to adjust their Tax Deducted at Source (TDS) accordingly.

4. Evaluate and Pay Advance Tax

If tax liability exceeds ₹10,000 in a financial year, they must pay the required advance tax by March. Taxpayers who pay their taxes on a timely basis can avoid penalties under Sections 234B or 234C for non-payment or underpayment of advance tax.

5. Optimise gains made on capital gains

Taxpayers who invest in stocks, mutual funds, or real estate should review their capital gains for the year. While ensuring accurate accounting of gains, they should also explore opportunities to carry forward any capital losses to offset future gains. Taxpayers should look forward to tax-loss harvesting strategies, such as selling investments at a loss to offset gains, which in turn reduces their tax liability.

6. Check and Reconcile Form 26AS/ AIS/ TIS

As the financial year 2024-25 is nearing its end, taxpayers should ensure their Form 26AS (tax credit statement)/ annual information statement (AIS) / tax information statement (TIS) is updated with all TDS deductions, advance tax payments, and self-assessment tax payments for the year. They should ensure that TDS deducted by the employer and other deductors should match the information mentioned in Form 26AS/ AIS/ TIS. If there are any discrepancies with the concerned parties, it should be recited and corrected before the year-end.

“As the financial year nears its end, proactive steps can significantly ease the ITR filing process. By reviewing and finalizing tax-saving investments, contributing to retirement funds, prepaying premiums, and ensuring proper TDS and other tax adjustments, taxpayers can minimize their taxable income and avoid unnecessary tax burdens. Early planning allows you to take full advantage of eligible deductions and exemptions, leading to a smoother and more efficient ITR filing process,” Surana added.