Deadline Alert! Last 3 weeks to invest in tax saving instruments to claim deduction, check details here | Mint
Source: Live Mint
With financial year 2024-25 soon coming to an end, only three weeks are remaining before the taxpayers can invest in the tax-saving instruments such as PPF, NSC, KVP, SSY and SCSS. Taxpayers who wish to claim income tax deduction must invest in these instruments before March 31.
Where can taxpayers invest to claim income tax deduction as they file tax return in July 2025?
They can invest in the tax-saving instruments mentioned under section 80C, 80CCC and 80CCD(1).
Which are the saving instruments one can invest into?
Under section 80C, one can invest in small savings schemes such as NSC, Public Provident Fund (PPF), KVP (Kisan Vikas Patra), SCSS (Senior Citizen Savings Scheme) and SSY (Sukanya Samridhi Yojana), among others.
Under section 80CCC, one can invest in designated pension plans by life insurance company. Under section 80CCD(1), one can contribute towards NPS. Collectively, one can claim a deduction of ₹1.5 lakh by investing in these schemes. Over and above this limit, one can also claim a further deduction of ₹50,000 by investin in NPS under section 80CCD(1B).
Is this mandatory to invest in these schemes before March 31?
It is mandatory to invest before March 31 to be able to claim tax deduction for the same financial year. However, if you invest on April 1 or later, the tax deduction can be claimed in the next financial year.
Are these deductions allowed in the old tax regime?
No, these income tax deductions are allowed only in the new tax regime. So, to be able to claim these deductions, you need to opt out of the default i.e., new regime of income tax.
Are there any deadlines in March this year?
March 15 is the deadline to pay fourth instalment of advance tax when 100 percent of the advance tax is payable.
Who is supposed to pay advance tax?
Any assessee including salaried employee whose tax liability for the financial year as reduced by the tax deducted/collected at source is ₹10,000 or more.
Resident senior citizens who do not have any income from business/profession are not liable to pay.
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