ITR to UPI: Money changes in March that will impact you financially

If you have chosen the old tax regime, ensure that your tax-saving investments under Sections 80C, 80D, 80G, and others are made before March 31, 2025, to maximise tax benefits

Deadline for activating UAN and seeding Aadhaar in bank accounts

 

The Employees' Provident Fund Organisation (EPFO) has extended the deadline for activating the Universal Account Number (UAN) and linking Aadhaar with bank accounts under the Employees' Deposit Linked Insurance (ELI) scheme to March 15. The UAN activation and linking of bank accounts with Aadhaar is necessary to avail of benefits under the EPFO’s ELI scheme.

 

Filing or updating ITR

 

If you have made an error in your previous Income Tax Return (ITR) or missed reporting any income, you can still rectify it by filing an updated return (ITR-U). This can be done within two years from the end of the assessment year, with the deadline set for March 31, 2025.

 

 

Nominations for mutual fund, demat accounts

 

Investors can now nominate up to 10 individuals for their mutual fund and demat accounts. For single-holder accounts, nominating a beneficiary is mandatory to prevent unclaimed assets. Investors must provide detailed nominee information, including a PAN, Aadhaar, or driving licence number. Sebi has revised the norms from March 1, 2025.

 

Tax saving investments (Section 80C, 80D, 80G etc.) under old tax regime

 

If you have chosen the old tax regime, ensure that your tax-saving investments under Sections 80C, 80D, 80G, and others are made before March 31 to maximise tax benefits.

 

Several deductions can be availed under the Income Tax Act, the major ones are:

 

Section 80C: This is the basic and primary investment options for tax savings. When one invests across these eligible options, you are eligible for a deduction of Rs 1.5 Lakh (maximum limit, all taken together) from your taxable income. Options are:

 

Public Provident Fund (PPF): They offer a safe, long-term investment with a 15-year lock-in. Alternatively, Equity Linked Savings Scheme (ELSS) mutual funds provide the potential for higher returns, but with a shorter 3-year lock-in.

 

Employee Provident Fund (EPF) is usually a mandatory contribution for salaried employees and a great investment for your retirement security.

 

Life insurance premiums qualify for deduction under 80C, securing your family's future. Another option is Sukanya Samriddhi Yojana which is a dedicated savings scheme for your girl child.

 

For homeowners on a home loan, repaying the principal of your home loan also falls under Section 80C, offering tax benefits while building your asset.

 

Section 80D: Investing in comprehensive health insurance for yourself, your spouse, children, and parents can help you get a deduction up to Rs 25,000 for individuals below 60, and up to Rs 50,000 for senior citizens. This is not only an effective tax saving tool but also covers you from unexpected medical expenses.

 

Section 80E: If you have taken an education loan for yourself, your spouse or children, the interest you pay on that loan is fully deductible under Section 80E.

 

Section 80G: Donations to eligible charitable institutions and funds can claim a deduction under Section 80G. The amount deductible depends on the recipient organisation, so one must check the details before donating.

 

Section 80CCD(1B): One can also consider contributing to the National Pension System (NPS). With this you can claim an additional deduction of up to Rs 50,000 under Section 80CCD(1B). This is over and above the Rs 1.5 lakh limit of Section 80C.

 

FD rates

 

Recently, many banks have made changes to their FD rates in February and similar changes could be seen in March, which could have a major impact on the savings of consumers.