Income Tax News: Hurry Up! Last Chance to Save Tax Before March 31, Check Top Investment Options

Income Tax News: As the financial year draws to a close, taxpayers must take note of an important deadline. If you plan to file your income tax return (ITR) under the old tax regime then March 31 is your last chance to make tax-saving investments. With just two days remaining, it is crucial to explore available investment options to maximise deductions and reduce taxable income.

Why March 31 Matters for Taxpayers?

The old tax regime offers multiple deductions under Section 80C, which helps taxpayers reduce their tax liability. However, to claim these benefits, investments must be made before March 31, 2025. If you miss this deadline, you cannot avail of these deductions when filing your income tax return (ITR) in July.

Tax-Saving Investment Options Before March 31

To optimise tax savings under the old tax regime, consider these investment options:

1. Public Provident Fund (PPF)

• Minimum investment: ₹500
• Maximum investment: ₹1.5 lakh per year
• Interest rate: 7.1% per annum
• Lock-in period: 15 years

2. National Savings Certificate (NSC)

• Minimum investment: ₹1,000
• No maximum limit
• Interest rate: 7.7% per annum
• Lock-in period: 5 years

3. Sukanya Samriddhi Yojana (SSY)

• Minimum investment: ₹250
• Maximum investment: ₹1.5 lakh per year
• Interest rate: 8.2% per annum
• For girl children under 10 years old

4. Kisan Vikas Patra (KVP)

• Minimum investment: ₹1,000
• No maximum limit
• Interest rate: 7.5% per annum
• Maturity period: Around 10 years

5. Senior Citizens’ Savings Scheme (SCSS)

• Minimum investment: ₹1,000
• Maximum investment: ₹30 lakh
• Interest rate: 8.2% per annum
• Lock-in period: 5 years

6. 5-Year National Savings Time Deposit

• Interest rate: 7.5% per annum
• No maximum limit
• Maximum deduction allowed: ₹1.5 lakh per year

Old Tax Regime vs New Tax Regime

It is important to note that these tax-saving benefits are available only under the old tax regime. If you choose the new tax regime, deductions under Section 80C are not applicable.

However, some deductions are still available under the new tax regime, including:

• Deduction under Section 80CCD(2): Employer’s contribution to the National Pension System (NPS).
• Deduction under Section 80CCH: Income earned under the Agnipath Scheme.
• Deduction under Section 80JJAA: 30% deduction for employers hiring new employees.

Plan Your Investments Wisely

It is important to note that taxpayers should not wait until the last minute to make tax-saving investments. Planning throughout the year helps in better financial management and prevents rushed decisions.

With the March 31 deadline approaching, now is the perfect time to review your investment options and ensure you maximise tax benefits under your preferred income tax regime. Whether you opt for the old tax regime or the new tax regime, making informed choices will help you save more and secure your financial future.