Just 7 days left: Key steps to update tax returns, claim deductions and avoid fines before March 31 deadline

With just seven days left on the clock, taxpayers are racing against the March 31, 2025, deadline to wrap up crucial income tax tasks. Missed steps now could mean penalties, lost deductions, and unwanted attention from the tax department. Acting early isn’t just about staying compliant — it’s about keeping more of your money in your pocket. 

Here are the key steps that taxpayers need to take before the financial year ends.

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Wrap up tax-saving investments   

To claim deductions under the old tax regime, eligible investments must be made by March 31. These include:   

• Section 80C: Contributions to PPF, ELSS, etc.   
• Section 80D: Health insurance premiums.   
• Section 80G: Donations to eligible charitable organisations.   

Note: These deductions apply only to those under the old regime. The new tax regime doesn’t offer these benefits.

File updated returns for AY 2022-23   

If your return for the Assessment Year 2022–23 was incomplete or incorrect, there’s still a chance to fix it. You can file an updated return by March 31, 2025, to avoid future scrutiny or penalties. 

Submit challan-cum-statements for February TDS   

If you deducted tax in February under the following sections, the challan-cum-statement must be submitted by March 30:   

• Section 194M: Payments to professionals or contractors.   
• Section 194-IA: TDS on property sales.   
• Section 194-IB: TDS on rent.   

Late submission can result in penalties and interest. 

Disclose foreign income   

Anyone claiming a foreign tax credit must submit details of foreign income and tax paid by March 31. This applies to returns filed under Section 139(1) or 139(4), and is especially important for individuals with income from overseas. 

The deadline is firm and the consequences for missing it are real. Whether it’s updating past returns, making last-minute investments, or reporting foreign income, taking these actions now ensures peace of mind and smoother filings.