There are only a few days left before the end of the financial year 2024-25, it will end on 31 March 2025 and the new financial year 2025-26 will start on 1 April 2025. At such a time, we often forget to do important tax-related work. Along with this, you also have very little time left to save tax. So let us know how you can save tax on this last chance and what important tax-related work you have to do so that you can avoid any kind of penalty or interest and save your hard-earned money.
Perfect ways to save tax at the last moment
Now that the financial year is about to end, you can still save tax by adopting some smart ways:
Health Insurance
Health insurance not only provides you with medical protection, but it is also a great way to save tax. In this way, you get a double benefit. Under Section 80D of Income Tax, you can save tax up to ₹ 75 thousand by taking health insurance. You can also get health insurance for your family and parents. Through this, you will also be able to save medical expenses worth lakhs of rupees. This is a great and sensible option to save tax at the last moment.
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Save capital gains tax
If you want to save capital gains tax, you can invest in 54EC bonds. By investing in it, you can save tax up to ₹ 50 lakh. You can invest money in 54EC bonds of NHAI (National Highways Authority of India) or REC (Rural Electrification Corporation). But you have to do this work before 31 March 2025. This is a great opportunity for those who have sold a large property this financial year and are about to pay capital gains tax.
Invest in tax-saving schemes
Currently, there are many types of schemes available to save tax. You can save lakhs of rupees in tax by investing in post office schemes like NSC (National Savings Certificate), FD (Fixed Deposit), ELSS (Equity Linked Saving Schemes) Mutual Fund, PPF (Public Provident Fund). By investing in these schemes, a tax of up to ₹ 1.5 lakh can be saved under Section 80C. This is a popular and effective method for those who want to avail tax savings along with safe investments.
The bonus of investing in NPS
If you are currently availing of Section 80C, under which you can save tax up to ₹ 1.5 lakh, then there is another good news for you. You can get tax benefits of up to an additional ₹ 50 thousand by investing in NPS (National Pension System). This allows you to save for your retirement as well as additional tax savings.
Get these important tax-related tasks done immediately
Before the financial year ends, it is very important to get some important tax-related tasks done:
Last chance to avoid a penalty
If you have made any mistake while filing your Income Tax Return (ITR), it can be updated or corrected. For this you have time till 31 March 2025. After this you may have to pay a penalty or even pay interest. Therefore, complete this work as soon as possible to avoid any kind of trouble.
Match TDS correctly
TDS (tax deduction at source) is deducted from the salary or investment amount of many people. So do not forget to check Form 26AS and AIS (Annual Information Statement). If you see any mistake in it, get it corrected by March 31. This will ensure that you get the correct credit for the tax you have paid.
Assess the profit and loss
This is the best time to review the investments. At this time you can check where you are making profits and where you are making losses. Along with this, you can also implement measures to save capital gains tax. This is an important step to finalize your investment strategy and plan for the next financial year.