Complete Your Tax-Saving Investments Before March 31, 2025, to Maximize Deductions
As the financial year 2024-25 comes to a close, it’s crucial to wrap up your tax-saving investments before the deadline of March 31, 2025. With only 10 days left to make your investments, now is the time to act if you want to take advantage of the available tax deductions. By choosing the right investment options under Section 80C, 80D, and the National Pension Scheme (NPS), you can significantly reduce your tax liability while also working towards your long-term financial goals.
Why You Should Invest Now – The window for tax-saving investments is closing fast. If you want to benefit from tax deductions this financial year, you must complete all your tax-saving investments by March 31, 2025. Failing to do so means you will miss out on valuable tax benefits. Remember, the tax-saving options are primarily available under the old tax regime, so make sure you are aware of your choices.
Top Tax-Saving Investment Options Under Section 80C
Here are some excellent investment options that can help you save taxes while also building wealth:
Equity Linked Savings Scheme (ELSS): This option not only offers tax savings but also helps in long-term wealth creation through equity investments.
Public Provident Fund (PPF): A government-backed scheme that provides guaranteed returns and tax-free interest, making it a safe investment choice.
Sukanya Samriddhi Yojana: Designed for the future of your daughters, this scheme ensures a secure financial future for them.
Tax-Saving Fixed Deposits (FDs): These come with a 5-year lock-in period and are a secure way to save taxes.
Life Insurance Policies: These not only provide insurance coverage but also come with tax benefits.
Children’s Tuition Fees: You can claim tax deductions on the tuition fees paid for up to two children.
Additional Tax Benefits Under Section 80CCD
Section 80CCD(1): You can claim a deduction of up to ₹1.5 lakh on contributions made to the NPS, which is 10% of your basic salary plus dearness allowance.
Section 80CCD(1B): An additional deduction of ₹50,000 is available for extra contributions to the NPS.
Corporate NPS: If your employer contributes to your NPS, you can enjoy additional tax benefits.
Age-Based Deductions
For individuals under 60 years, you can claim up to ₹25,000 in deductions.
For those above 60 years, the deduction limit increases to ₹50,000.
