Taxpayers Urged to Maximize Savings Before March 31 Deadline
Mumbai, 18th March 2025: With the financial year 2024-25 coming to a close, taxpayers are reminded that the new financial year 2025-26 will begin on April 1, 2025. This is the final opportunity for individuals to make tax-saving investments before the March 31, 2025, deadline.
Many taxpayers continue to prefer the old tax regime, which allows deductions of up to ₹1.5 lakh under Section 80C. In contrast, the new tax regime provides limited deductions, making the old regime a more attractive option for those looking to reduce their taxable income before the year ends.
Under the old tax regime, individuals and Hindu Undivided Families (HUFs) can claim tax deductions up to ₹1.5 lakh through various eligible savings schemes, including:
- Life Insurance premiums
- Equity-Linked Savings Scheme (ELSS)
- Public Provident Fund (PPF)
- Sukanya Samriddhi Scheme
- Senior Citizen Savings Scheme
- Certain Post Office savings schemes
Additional Tax Deductions Under Sections 80CCC & 80CCD
For those seeking further tax-saving opportunities, understanding Sections 80CCC and 80CCD is essential:
- Section 80CCC: Allows deductions for investments in pension plans with LIC or other insurance companies, provided the plan is specifically a pension plan.
- Section 80CCD(1): Allows a deduction for contributions of 10% of salary to government pension schemes, with a maximum limit of ₹1.5 lakh.
- Section 80CCD(1B): Provides an additional deduction of up to ₹50,000 for investments in the National Pension Scheme (NPS). Notably, 60% of the maturity amount from NPS is tax-free, although the monthly annuity remains taxable.
Act Now to Maximize Tax Savings
With the March 31, 2025, deadline fast approaching, taxpayers are encouraged to take full advantage of these tax-saving options. Section 80C, along with Sections 80CCC and 80CCD, offers multiple opportunities to reduce tax liabilities, particularly through investments in Life Insurance, PPF, and pension schemes.
Taxpayers should act promptly to ensure maximum tax benefits before the new financial year begins.
