March Deadline: Recheck These 5 Tax-Related Tasks Before 31 March As FY25 Draws To Close

March is a crucial month in terms of personal finance as its end marks the conclusion of the financial year and multiple deadlines related to tax, fixed deposits, ITR, health insurance, and several other investment instruments.

With just two days left in FY25, individuals must ensure that they have done all the necessary financial tasks to avoid late fees, unnecessary deductions and other fines. If you have completed everything and fear that something is left to be done before 31 March 2025, here's a quick guide to recheck all the tasks related to personal finance needed to be done before 31 March, 2025.

Updated ITR filing

Individuals can file their updated income tax returns (ITR) for the financial year 2021-22 till 31 March 2025. Updated ITR (ITR-U) can be filed by the individuals who missed filing the ITR for the mentioned year. Those who found a discrepancy in their previous ITR filing in FY22, can make corrections with ITR-U. Those who paid less tax against their taxable income or have higher carried forward losses can also file an updated ITR. However, filing an ITR-U requires individuals to pay additional amount of tax.

Special fixed deposit interest

Several special fixed deposit plans by SBI Bank, IDBI Bank, and other financial institutions will no longer be available after 31 March. These special fixed deposits offered better returns for individuals compared to other term deposit plans. Most of the SBI special FD schemes like SBI Amrit Vrishti, SBI Amrit Kalash, IDBI Utsav Callable FD, Indian Bank's IND Supreme, IND Super, etc will reportedly end on 31 March, 2025.

Tax liability for the financial year 2024-25

Taxpayers under the old tax regime for the financial year 2024-25 can recheck their tax liability for FY25. Reassessment of the tax liability will allow you to identify any loopholes or mistakes in your tax-saving investments and recheck them before 31 March 2025.

Old tax regime vs New Tax regime

After calculating your tax liability for FY25, it is always better to compare which regime is better for you. Salaried taxpayers can change their income tax regime anytime before filing ITR, ie 31 July 2025. The option is not available for individuals filing their belated ITR. Additionally, individuals can also rethink their tax regime choice for FY26.

"As the new financial year approaches, taxpayers are preparing for ITR filing in 2025. Choosing between the new and old tax regimes requires careful consideration of income, deductions, and financial goals. While the new tax regime offers lower tax rates with fewer deductions, the old tax regime allows individuals to claim exemptions and deductions, making it beneficial for those with significant eligible expenses," said Brahmajosyula, Chief Product & Marketing Officer at SBI General Insurance.

Tax saving investment

The old tax regime offers multiple options to save on taxes with the help of opting for tax-saving investments. Most of these investments must be done before 31 March. Hence, ensure that you have invested in instruments like national pension schemes, tax saving FDs, etc.

Individualscan get tax exemption upto Rs 1.5 lakh under Section 80C of the old tax regime if they will invest in options like Public Provident Fund, National Savings Certificates, Senior Citizen Savings Scheme, 5-year fixed deposit in banks and the post office, Equity-linked Savings Scheme (ELSS), Unit-linked Insurance Plan (ULIP), etc.

Additionally, people can also claim deductions on their health insurance premiums. Opting for health insurance will not only provide tax benefits but a careful selection would also help people in planning for any unprecedented healthcare emergency.

'Health insurance offers a dual benefit by providing financial protection against medical emergencies and facilitating tax savings under the Income Tax Act. Specifically, under the old tax regime, Section 80D allows individuals to claim deductions on health insurance premiums paid for themselves, their spouses, their dependent children, and parents. The tax deduction limits vary based on age: up to ₹25,000 per financial year for individuals below 60 years, and up to ₹50,000 for those aged 60 years and above. Additionally, an extra deduction can be claimed for parents-up to ₹25,000 if they are below 60 years, or up to ₹50,000 if they are senior citizens," said Srikanth Kandikonda, CFO, ManipalCigna Health Insurance. Apart from these investment options, individuals can also claim deductions for donations under Section 80G.