- Taxpayers must act by March 31 to secure key tax savings under Section 80C
- Failing to invest Rs 1.5 lakh in specified instruments results in losing guaranteed returns
- Equity investors can reduce future tax by booking gains and reinvesting to reset profits
Taxpayers could risk losing money if they ignore March 31, the final deadline to lock in key tax savings.
According to chartered accountant Nitin Kaushik, many individuals are effectively "volunteering to pay more than they owe" by failing to act before the financial year ends.
"The math on Section 80C is binary," Kaushik said, referring to the Rs 1.5 lakh deduction cap. "If you haven't moved Rs 1.5 lakh into instruments like PPF or ELSS by Tuesday, you are choosing to hand that liquidity to the government."
He describes it as a guaranteed return that disappears once the deadline passes.
Kaushik, in an X post, also pointed to tax harvesting as a missed opportunity for equity investors. With the Long Term Capital Gains exemption at Rs 1.25 lakh, investors can reduce future tax exposure by booking gains now.
"By selling and immediately reinvesting, you reset your profit to zero tax," he said. "It is a legal way to lock in gains without paying the 12.5% tax rate later."
Loss making investments can also be used strategically. Selling underperforming assets to offset gains reduces total taxable income and lowers liability.
"This turns a portfolio mistake into a functional tax shield," Kaushik said.
He added that renters, especially those without House Rent Allowance, often miss Section 80GG. Eligible taxpayers can claim up to Rs 60,000 annually by filing Form 10BA before the deadline.
On penalties, Kaushik noted that while missing the March 15 advance tax deadline is not final, unpaid tax after March 31 attracts 1 percent monthly interest under Sections 234B and 234C.
"Paying before March 31 stops the clock," he said.
He emphasized that the rules are clear and time bound.
"The tax code isn't a suggestion; it's a set of rules," Kaushik said. "If you don't use the exemptions written into those rules, you're effectively volunteering to pay more than you owe."
