Income Tax Due Dates and Compliance for March 2025: A Complete Guide
March is a crucial month for taxpayers in India as it marks the end of the financial year and involves multiple income tax compliance deadlines. Adhering to these deadlines is essential to avoid penalties and ensure smooth financial operations. This article provides a comprehensive guide to the key income tax due dates and compliance requirements for March 2025.
1. TDS and TCS Payments
- 2 March 2025: The due date for furnishing challan-cum-statement for tax deducted under Sections 194-IA (TDS on property), 194-IB (TDS on rent), 194M (TDS on contract work), and 194S (TDS on cryptocurrency transactions) for the month of January 2025.
- 7 March 2025: The last date for depositing tax deducted/collected at source (TDS/TCS) for February 2025. Government deductors must remit the payment on the same day if it is paid without a challan.
- 17 March 2025: The due date for issuing TDS certificates for tax deducted under Sections 194-IA, 194-IB, 194M, and 194S in January 2025.
- 30 March 2025: The last date for furnishing challan-cum-statement for tax deducted under Sections 194-IA, 194-IB, 194M, and 194S for February 2025.
2. Advance Tax Payments
- 15 March 2025: The fourth and final installment of advance tax for the financial year 2024-25 (Assessment Year 2025-26) is due. Taxpayers, including salaried individuals with other income sources and businesses, must calculate and pay the due advance tax. Additionally, taxpayers opting for the presumptive taxation scheme under Sections 44AD and 44ADA must pay their entire advance tax liability by this date.
3. Compliance for Government Deductors
- 15 March 2025: The last date for government deductors to furnish Form 24G for the TDS/TCS deducted without a challan in February 2025.
4. Filing Updated Return for AY 2022-23
- 31 March 2025: The final deadline for taxpayers to file an updated return (ITR-U) for the Assessment Year 2022-23. This provision allows individuals and businesses to rectify any omissions or errors in their previous filings and claim additional refunds if applicable.
5. Foreign Tax Credit Compliance
- 31 March 2025: The last date for taxpayers to upload Form 67 for claiming foreign tax credit on foreign income that has been offered to tax in India. This compliance applies to taxpayers who have filed their returns on or before the due dates specified under Sections 139(1) and 139(4).
Consequences of Missing Deadlines
Failing to comply with the above deadlines can result in the following consequences:
- Interest under Sections 234A, 234B, and 234C for delayed payments.
- Late fees and penalties for non-filing or delayed filing of returns and statements.
- Disqualification from claiming foreign tax credits if Form 67 is not submitted on time.
Conclusion
Taxpayers must be diligent in meeting these deadlines to avoid unnecessary penalties and ensure a smooth financial year closure. Utilizing digital platforms, automated reminders, and consulting tax professionals can help in timely compliance. Keeping track of income tax due dates is an essential financial discipline that ensures legal and financial well-being.
