Financial year 2024-25 is reaching its end in a few days. 31st March is an important deadline with reference to Financial Planning and Tax Planning, missing it may result in higher tax liability. We are required to complete our tax planning before 31st march 2025, as we are required to file Income tax return for FY 2024-25 during 2025-26. For claiming many deductions and exemptions in our income tax return, we need to take the right step before 31st march 2025. So if you have not completed your tax planning for FY 2024-25 you are left with a few days only. For your reference, given below is the list of some important financial decisions which are required to be taken before 31st march 2025.<\/p>\n\n\n\n
So what are you waiting for?…this is last chance to plan your tax for FY 2024-25 (AY 2025-26)..or you may need to regret at the time of filing your ITR..So the the right step now…<\/p>\n\n\n\n
We know that w.e.f all long term capital gains (covered under STT) were exempt u\/s 10(38) upto 31-3-2018 but long term capital gain (covered under STT) above Rs. 100000\/- are made taxable @10% from 01.04.2018. Other long terms capital gain (other than equity) are taxed @20% with indexation. Further Short term capital gain (covered under STT) are taxed @15% and other short term capital gain (other than equity) are taxed as per slab rate. With effect from 23.7.2024, long term capital gain (covered under STT) above Rs. 125000\/- are made taxable @12.5% . Further Short term capital gain (covered under STT) are taxed @20%.<\/strong><\/p>\n\n\n\n In case you have a capital loss , that can be carried forwarded to limited number of years (8 years) for adjusted with future capital gains. Now Review your portfolio for tax planning on capital gain. For example if in your return you have carried forwarded any short term capital loss which is allowed to carry forward only upto 8 assessment years. If this is your 8th year, review your portfolio any if any short term capital gain is available, sell the shares and book short term capital gain to adjust carried forwarded short term capital loss(STCL) otherwise this will lapse. You can buy your shares again by paying marginal brokerage which you have to bear. But remember that sell and buy transaction should not be done on the same day.<\/p>\n\n\n\n Further if you have capital gain in current year 2024-25, on which you need to pay tax. But if in your portfolio some shares which are currently in loss then you can sell these shares to book loss so that you need not pay any tax on current year gain as it will be adjusted against the loss booked now. You can again buy these shares next day. Through this planning, You can save tax on capital gain.<\/p>\n\n\n\n IF you are in Old tax Regime then you can claim a deduction of Rs. 150000\/- u\/s 80C, it means An Individual or HUF can reduce your total taxable income up to Rs 1,50,000 from through section 80C. Section 80C provides list of investments\/ expenditures which is allowed as deduction. If you are short of limit u\/s 80C, you are left with only few days to consider option best suitable to you, by investing in these you will get deduction u\/s 80C from upto Rs. 150000\/-. List of some important investment deductible u\/s 80C is given below:<\/p>\n\n\n\n For FY 2024-25 the cutoff date for these investment is 31st march 2025 but if you are employed then your employer may have asked you to submit your detail for deduction u\/s 80C before Feb-25 or march-2025 so that your TDS can be deducted accordingly and any access or less deduction in earlier months can be adjusted in the salary for the month of march-2025.<\/p>\n\n\n\n If you are in OLD tax regime, U\/s 80CCD(1B) a deduction of Rs 50,000 can be claimed which is over & above the limit of Rs. 150000\/- u\/s 80C. If you are in 30% Tax bracket then making an contribution to NPS is going to save immediate Rs. 15000\/- of your tax. You may decide to open an NPS account if you have not opened earlier or you may decide contribute to earlier opened account. To get deduction under section 80CCD(1D) for FY 2024-25, you need to make contribution before 31st March 2025. You need to submit the contribution receipts to your employer to get the benefit of 80CCD(1B) in form-16.<\/p>\n\n\n\n If you have chosen to invest in any social security schemes like Public Provident Fund (PPF), National Pension Scheme(NPS) or Sukanya Samridhi Yojana (SSY) etc. which requires a minimum amount to be deposited in every year to keep them active. If you forgot to invest the minimum amount in these schemes, then you have to pay a penalty along with unpaid amount to make the scheme active again. Make sure that you have deposited at least minimum amount before 31st march 2025.<\/p>\n\n\n\n If you have not filed your income tax return for financial year 2023-24 or you want to revise your income tax return for 2023-24 (only if assessment is not yet completed) then it could be done unto 31st Dec 2024. <\/p>\n\n\n\n As per section 139(4):-<\/p>\n\n\n\n As per section 139(5):-<\/p>\n\n\n\n In Budget 2022, The concept of updated return was introduced. An “Updated Return” can be filed within two year from the end of relevant assessment year. Some taxpayers may <\/strong>realize that they have committed omissions or mistakes in correctly estimating their income for tax payment. Updated Return will provide an opportunity to correct such errors, Assessee can file an Updated Return on payment of additional tax. 31st March 2025 is the last date for filing updated return for FY 2021-22 by paying additional tax.<\/p>\n\n\n\n By union budget 2025, time limit for updated return extended to 48 months with additional tax liabilities:-<\/p>\n\n\n\n If your tax liability is more than Rs. 10000\/- then make sure that you have paid all tax dues as advance tax. If any sum is pending make sure that it is deposited before 31st march 2025 to reduce your interest liability u\/s 234B. For delayed payments of advanced tax interest u\/s 234B & 234C are charged.<\/p>\n\n\n\n Interest u\/s 234C on last installment if you forgot to pay 100% of your advance tax till 15th March then if you<\/p>\n\n\n\nDecision regarding Investment to claim deduction U\/s 80C<\/strong><\/h3>\n\n\n\n
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Decision regarding contribution to NPS u\/s 80CCD(1B)<\/strong><\/h3>\n\n\n\n
Decision regarding continuity of social security schemes.<\/strong><\/h3>\n\n\n\n
31st Dec 2024 was last date to file belated Income tax return(ITR) u\/s 139(4)<\/strong> and revised ITR u\/s 139(5) for<\/strong> for FY 2023-24 (AY 2024-25)<\/h3>\n\n\n\n
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31st March 2025 is <\/strong>the last date for filing updated return for FY 2021-22<\/h3>\n\n\n\n
ITR-U filed within<\/strong><\/td> Additional Tax<\/strong><\/td><\/tr> 12 months from the end of the relevant AY<\/td> 25% of additional tax (tax + interest )<\/td><\/tr> 24 months from the end of the relevant AY<\/td> 50% of additional tax (tax + interest )<\/td><\/tr> 36 months from the end of the relevant AY<\/td> 60% of additional tax (tax + interest )<\/td><\/tr> 48 months from the end of the relevant AY<\/td> 70% of additional tax (tax + interest )<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Payment of tax liability including Advance tax.<\/strong><\/h3>\n\n\n\n