March End Income Tax Checklist: Key Points to Remember!

Here’s a tailored March End Income Tax Checklist, highlighting key points to remember as of March 18, 2025, for the Financial Year (FY) 2024-25 (ending March 31, 2025). This is based on general practices under the Income Tax Act, 1961, and assumes the old tax regime unless specified, as it offers more deductions. Start early to avoid penalties or missed opportunities!

1) Furnishing of an updated return of income for the Assessment Year 2022-23: In Income tax, 31st March 2025 is the last date to file the updated return, if the taxpayer has made errors or omissions in their original or revised return for FY 21-22.

2) Investment for Deduction: If deduction u/s 80 ( for eg. 80C, 80G) is to be claimed in Income tax for FY 2024-25, then every taxpayer should verify the limits of Income tax and their tax liability and should invest, donate, etc. before 31st March 2025.

3) TDS on Salary: Salaried Employees should give the details of Investments and deductions tothe Employer to avoid excess TDS deduction in the month of March.

4)Annual Information Statement (Form 26AS): Every Taxpayer should download Form 26AS and verify TDS deducted/TCS collected. Similarly, taxpayers should also verify the Income as mentioned in 26AS and AIS with Books of Accounts.

Also, check the SFT transactions like the purchase of mutual funds if the aggregate amount is Rs. 10 lakhs or more in a FY, 👇

Purchase or sale of immovable property if transaction value or valuation by Stamp Valuation Authority is Rs. 30 lakhs or more, etc are reflected in the Form 26AS or not.

5)Form 15 G/ H: The taxpayers who have income from interest only and it is less than the basic exemption limit, then they can file manually or online in Form 15 G/ H.

6) Booking of Losses: Taxpayers whose shares are in red, especially those who have not booked capital losses, should ensure they are properly recorded and book capital losses before 31st March.

As these losses can be adjusted against taxable capital gains or carried forward for up to 8 years to set off against future gains.

7) Deduction for statutory dues: If the taxpayer has cash basis accounting system and wants to claim the deduction of the statutory dues paid, then he must make the payment of said dues before 31st March.

8) Closing Stock Verification: All the taxpayers should do the verification of Stock at the year's end. Along with that, verification of immovable property should also be done and match them with book value.

If it does not match, then prepare the reconciliation statement.

9) Comparative Balance Sheet and Profit and Loss A/c: Taxpayers should prepare a Comparative Balance sheet and Profit and Loss A/c for the year.

So that they will come to know the total turnover, Profit - Loss, Expenditure, etc. Similarly, check the accounting ratios also.

10)Pay Advance Tax (Final Installment)If your tax liability exceeds ₹10,000 and isn’t covered by TDS, pay the final advance tax installment by March 31, 2025 (100% of liability due). Missing this incurs interest under Sections 234B and 234C.

11)Link PAN with AadhaarEnsure your PAN is linked with Aadhaar. Though the original deadline has passed, unlinked PANs become inoperative, affecting refunds and filings. Check status and link by March 31 to avoid issues.

12) Capital gains planning:

Sell shares or property before March 31 to book capital gains/losses for FY 2024-25. Offset losses against gains to reduce tax. Reinvest long-term capital gains in 54EC bonds (₹50 lakh limit) by March 31 for exemption.