As the calendar year 2024 winds down, it’s essential for taxpayers to evaluate their financial status and take steps to minimize tax liabilities. While India’s current fiscal year ends on March 31, 2025, this period provides an excellent opportunity to familiarize oneself with available tax benefits under the Income Tax Act, 1961 (IT Act). A proactive approach can not only save money but also align financial decisions with long-term goals.
In this article, we provide a brief overview on a few critical actions for taxpayers in India to streamline their year-end tax planning.
Tax Saving Options 2024
Filing Belated Income Income-Tax Return on or before 31st December 2024
Taxpayers who missed their original ITR filing deadlines (July 31 or later, depending on their audit requirements) can still file a belated return under Section 139(4) by December 31, 2024, if the assessment isn’t concluded. Taxpayers need to note even though such belated return can be filed, such late filing can lead to restrictions on carry forward losses (excluding house property losses), imposition of the requisite interest & penalties and late filing fees.
Also Read: HRA missing from your salary? Here’s how to claim a tax deduction for rent
Submission of Revised Returns on or before 31st December 2024
Taxpayers who detect errors in their original ITR can file a revised return by December 31, 2024, provided the original return hasn’t been processed and the assessment isn’t completed.
Payment of Advance Tax
Taxpayers with a tax liability of Rs. 10,000 or more (post adjustments for TDS and other reliefs) are required to pay advance tax in four instalments during the relevant financial year. Failure to meet these obligations may result in interest penalties u/s 234C of the IT Act, which imposes simple interest at the rate of 1% per month or part of a month for underpayment or non-payment of instalments.
The deadlines and payment requirements for advance tax are as follows:
Due date of InstallmentAmount PayableMinimum Amount Payable for Non-applicability of Interest u/s 234C of IT ActInterest Payable u/s 234C of IT ActOn or before 15th June15%12%1% x 3 months x shortfall in taxOn or before 15th September45%36%1% x 3 months x shortfall in taxOn or before 15th December75%75%1% x 3 months x shortfall in taxOn or before 15th March100%100%1% x 1 month x shortfall in tax
It is crucial for the taxpayers to note that the due date for the third installment of advance tax was 15 December 2024 and the requisite tax had been paid by them in order to avoid interest consequences u/s 234C of the IT Act.
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