March 31 Tax Deadline Round-Up: Key Tax Moves to Make Before FY 2024-25 Ends

As the financial year 2024-25 comes to a close, taxpayers in India must stay alert to a series of critical tax deadlines. Failing to act before March 31, 2025, could result in penalties, interest payments, or missed tax benefits. From updated returns to advance tax payments, here’s a quick guide to everything that must be done before the clock runs out.

Filing Updated ITR (ITR-U) for FY 2022-23

Taxpayers who have any previously unreported income for FY 2022-23 (AY 2023-24) must file their updated Income Tax Return (ITR-U) by March 31, 2025. Filing by this deadline will attract an additional 25% tax on the undisclosed income. If filed after March 31 but within the next 1 year, the penalty rises to 50% plus interest.

The government has proposed extending the time limit for filing updated returns to four years from April 1, 2025. However, the penalty for late filing will be higher under the revised window.

Tax-Saving Investments Under the Old Regime

Taxpayers opting for the old tax regime must make eligible investments before March 31 to claim deductions for FY 2024-25. Key deductions include:

• Section 80C: ELSS, PPF, NSC, life insurance premiums, tuition fees
• Section 80D: Health insurance premiums
• Section 80G: Donations to specified charitable institutions

Investments made after March 31 will not qualify for tax relief in the current financial year.

Advance Tax Payment for Additional Income

Salaried individuals who have earned additional income (like interest, capital gains, or freelance work) should pay any pending advance tax before March 31. Options include:

• Requesting the employer to deduct additional TDS, subject to the payroll cut-off
• Making a direct advance tax payment through the income tax portal

Failure to pay advance tax may attract interest under Sections 234B and 234C.

Submission of Form 67 for Foreign Tax Credit

Taxpayers who have earned income abroad and want to claim credit for taxes paid outside India must submit Form 67 by March 31, 2025. This applies to FY 2022-23.

Foreign tax credit is only allowed if the return is filed under Section 139(1) (original return) or 139(4) (belated return). Missing the deadline will result in the denial of the credit.

Conclusion

March 31, 2025, marks an important compliance deadline for several tax-related actions. Whether it’s updating past returns, completing deductions under the old regime, paying advance tax, or reporting foreign income, timely action can help avoid penalties and preserve your tax benefits.

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