Income Tax Deadline 2025: Key tasks to complete before March 31 to avoid penalties & maximise benefits

Taxpayers must meet several critical income tax deadlines before March 31, 2025, as the financial year draws to a close. Delays can lead to penalties, loss of deductions and increased scrutiny. Timely action not only ensures compliance but also helps maximise tax benefits.

1. Complete tax-saving investments

Investments eligible for deductions under the old tax regime must be completed by March 31. These include:

• Section 80C: Public Provident Fund (PPF), Equity-Linked Savings Scheme (ELSS), etc.
• Section 80D: Health insurance premiums.
• Section 80G: Donations to approved charitable institutions.

Note: These deductions are applicable only under the old tax regime. Taxpayers under the new regime are not required to make such investments for tax relief.

2. File updated income tax returns

If you missed reporting income or made errors in your ITR for the Assessment Year 2022–23, you can still file an updated return by March 31, 2025. This helps you correct any discrepancies and stay on the right side of tax compliance, potentially avoiding future notices and penalties.

3. Submit challan-cum-statements

If tax was deducted in February 2025 under the following sections, the challan-cum-statement must be submitted by March 30, 2025:

• Section 194M: Payments to contractors or professionals.
• Section 194-IA: TDS on property transactions.
• Section 194-IB: TDS on rent payments.

Missing these deadlines may attract interest and penalties.

4. Declare foreign income

Taxpayers claiming a foreign tax credit must upload a statement of foreign income and tax paid by March 31, 2025. This applies to returns filed under Section 139(1) or 139(4) and is crucial for those with income from overseas sources.

Act now to avoid penalties

With the March 31 deadline fast approaching, taxpayers should not delay. Whether it's updating previous returns, investing for deductions, or declaring foreign income, proactive steps now can help you avoid penalties and ensure a smooth tax filing experience.