Tax Planning for 2025: How to Maximise Your Savings Before the March 31 Deadline

Introduction

As the financial year 2024-25 comes to a close, taxpayers have a crucial window to optimize their tax savings before the March 31 deadline. Proper tax planning ensures you reduce your taxable income, claim deductions, and maximize savings.

Whether you’re a salaried employee, business owner, or investor, this guide will help you navigate the best tax-saving strategies before the deadline.

Key Tax-Saving Strategies Before March 31, 2025

Maximize Deductions Under Section 80C (Up to ?1.5 Lakh)

Section 80C allows deductions up to ?1.5 lakh from taxable income. Utilize this limit by investing in:

Public Provident Fund (PPF)
Employee Provident Fund (EPF)
Equity-Linked Savings Scheme (ELSS)
National Savings Certificate (NSC)
Five-Year Fixed Deposit (FD) in Banks/Post Office
Life Insurance Premiums

Take Advantage of Section 80D (Health Insurance Benefits)

You can claim a deduction of up to ?25,000 for health insurance premiums for yourself, spouse, and children.
An additional ?50,000 deduction is available for parents aged 60 and above.

Home Loan Tax Benefits (Sections 24 and 80EEA)

Interest paid on home loans qualifies for a deduction of up to ?2 lakh under Section 24(b).
First-time homebuyers can claim an additional deduction of ?1.5 lakh under Section 80EEA.

Claim HRA and Rent Deductions

If you pay rent but don’t receive HRA, you can claim a deduction under Section 80GG (up to ?60,000 annually).
Salaried employees can claim House Rent Allowance (HRA) exemption based on salary and rent paid.

Invest in the National Pension System (NPS) for Extra Deductions

Employees can claim an additional ?50,000 deduction under Section 80CCD(1B) by investing in NPS.
Employers’ contributions to NPS are also tax-exempt under Section 80CCD(2).

Donate to Charity (Section 80G Benefits)

Donations to registered charities and relief funds qualify for tax deductions.
Ensure you donate to approved organizations and obtain a valid receipt for tax benefits.

Utilize Capital Gains Tax Exemptions

Section 54: Invest capital gains from selling property into another property to save tax.
Section 54EC: Invest capital gains in specified bonds (NHAI/REC) within six months to get tax exemption.

Business Owners: Reduce Tax Liability with Deductions

Claim business expenses such as rent, salaries, travel, and office costs.
Deduct expenses related to depreciation of assets and investments in business growth.

File Income Tax Returns (ITR) on Time to Avoid Penalties

Ensure you file your Income Tax Return (ITR) before the due date to avoid penalties and interest charges.
Use the latest tax regime comparison to choose between old and new tax regimes.

Last-Minute Tax Planning Checklist Before March 31

? Max out your 80C limit (?1.5 lakh)
? Check if you’ve claimed deductions under 80D (health insurance)
? Pay any advance tax liability to avoid penalties
? Ensure TDS mismatches are resolved
? File ITR for previous financial years if pending
? Make tax-saving investments before the deadline