Key Income Tax Tasks to Complete Before March 31: Expert Tips for a Smooth ITR Filing in 2025

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Thu, 27 Mar 2025 17:28:02 IST
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As the financial year 2024-25 draws to a close, taxpayers must gear up for the upcoming income tax return (ITR) filing season. Although the ITR filing window for the assessment year (AY) 2025-26 officially opens on April 1, it is crucial to complete several important tax-related tasks before March 31 to avoid last-minute stress and potential penalties.


Filing accurate returns ensures compliance with tax laws while maximizing benefits from deductions and exemptions. Whether you are a salaried professional, business owner, or freelancer, early preparation can simplify the process. Here are some essential tasks, as outlined by Mumbai-based chartered accountant Suresh Surana, that taxpayers should focus on before the financial year ends.

1. Maximise Tax-Saving Investments


For those opting for the old tax regime, making the most of tax-saving investments can significantly reduce taxable income. Some key provisions include:

  • Section 80C: Offers deductions up to Rs. 1.5 lakh for investments in PPF, ELSS mutual funds, life insurance premiums, housing loan principal repayment, NSC, tuition fees, and five-year fixed deposits.
  • Section 80D: Allows deductions up to Rs. 25,000 for health insurance premiums covering self, spouse, and children. An enhanced limit of Rs. 50,000 is applicable for senior citizens.
  • Section 80G: Covers deductions for donations made to registered charitable organizations.
  • Section 80CCD(1B): Provides an additional deduction of up to Rs. 50,000 for contributions to the National Pension System (NPS).

Ensuring that all investments are made before March 31 helps taxpayers fully utilize these deductions.


2. Submit Proofs for Eligible Deductions to Employer

Salaried employees must provide relevant tax-saving proofs to their employer before the internal cut-off date (or March 31) to ensure accurate tax deduction at source (TDS) calculations. These proofs include:

  • Investment certificates under Section 80C (PPF, LIC, etc.)
  • Health insurance payment receipts under Section 80D
  • Home loan interest certificates under Section 24(b)

Timely submission prevents excess TDS deductions and avoids additional tax liabilities during ITR filing.

3. Adjust TDS and Tax Deductions


Taxpayers anticipating changes in income, deductions, or exemptions should inform their employer or relevant tax deductors in advance. Proper adjustments in TDS ensure accurate tax payments and minimize the risk of underpayment penalties.

4. Pay Advance Tax if Applicable

If the total tax liability for the year exceeds Rs. 10,000, taxpayers must ensure timely advance tax payments by March 31. Non-payment or underpayment may result in interest penalties under Sections 234B and 234C. Checking tax liabilities beforehand helps avoid unexpected financial burdens later.

5. Optimise Capital Gains Taxation

For individuals with investments in stocks, mutual funds, or real estate, reviewing capital gains and potential losses before year-end is vital. Taxpayers can:


  • Offset capital gains by carrying forward eligible capital losses
  • Utilize tax-loss harvesting strategies to sell loss-making investments, reducing taxable income

These strategies help optimize tax liabilities and enhance overall financial planning.

6. Verify Form 26AS, AIS, and TIS

Before the financial year ends, taxpayers should reconcile their tax records with Form 26AS (tax credit statement), AIS (Annual Information Statement), and TIS (Tax Information Statement). Ensuring accuracy in TDS deductions, advance tax payments, and self-assessment taxes can prevent discrepancies while filing returns.

If inconsistencies arise, taxpayers should resolve them with relevant parties before March 31 to avoid issues during the filing process.

Plan Ahead for a Hassle-Free ITR Filing


"As the financial year nears its end, taking proactive steps can significantly ease the process of filing the Income Tax Return (ITR). By reviewing and finalizing tax-saving investments, contributing to retirement funds, prepaying premiums, and ensuring that TDS and other taxes are adjusted properly, taxpayers can minimise their taxable income and avoid unnecessary tax burdens. Early planning allows you to take full advantage of eligible deductions and exemptions, leading to a smoother and more efficient ITR filing process when the time comes," says Surana.

By staying proactive and completing these key tasks before March 31, taxpayers can ensure a seamless tax filing experience while maximizing their financial benefits.