Tax Saving Investment 31 March 2025 : The month of March is like a deadline for many tasks. Taxpayers have to invest by March 31, 2025 to save their tax.
Apart from this, there are many tasks that taxpayers and employed people have to deal with. EPF members have to activate UAN by March 15, 2025 to get insurance benefits. Rules for making nominees in mutual funds and demat accounts have come into force.
1. Last date for tax saving investment – 31 March 2025
Taxpayers have the last chance to save taxes till March 31, 2025. Those who are following the old tax system can avail some special deductions.
Section 80C: Up to Rs 1.5 lakh can be claimed as deduction by investing in PPF, ELSS, NSC, and life insurance premium.
Section 80D: Tax exemption can be availed on health insurance premium.
Section 24(b): Interest paid on home loan can be claimed as deduction.
Section 80CCD(1B): An extra deduction of up to Rs 50,000 can be availed by investing in National Pension System (NPS).
If taxpayers do not invest before this deadline, they may have to pay more taxes.
2. UAN Activation for EPFO members – Last Date 15 March 2025
Employees who come under the Employees’ Provident Fund Organisation (EPFO) are required to activate their Universal Account Number (UAN) by March 15, 2025. In case the UAN is not activated, employees will not get the insurance benefit of the Employees’ Deposit Linked Insurance (EDLI) scheme. This scheme provides insurance cover of up to Rs 7 lakh to EPF members. If an employee does not activate his UAN, he will not be able to avail the benefits of this scheme.
3. New nomination rules for mutual funds and demat accounts – effective from March 1, 2025
SEBI has issued new rules regarding nomination in mutual funds and demat accounts. According to these rules, investors can nominate up to 10 people. Nomination has been made mandatory for single-holder accounts, so that there is no problem of unclaimed assets. It will be necessary for the nominee to provide PAN, last four digits of Aadhaar, or driving license number. Investors will have to provide the nominee’s contact, relationship information and date of birth if the nominee is a minor. In case of a joint account, if one account holder dies, the property will automatically be transferred to the other surviving account holder.
4. Change in UPI rules for insurance premium payment – effective from March 1, 2025
The rules for paying insurance premium through UPI are changing. From March 1, 2025, insurance premium can be paid under the Bima-ASBA service.
Who will benefit from this?
After making payment for the insurance policy, the amount will remain blocked until the insurance company accepts the policy. If the insurance proposal is rejected, the blocked amount can be unblocked automatically.
