Filing Taxes with Foreign Income
Section 80C Investments: If you are still following the old tax regime and haven’t made your tax-saving investments for the financial year 2024-25, you need to act fast. The deadline to complete these investments is March 31, 2025. If you miss this date, you will lose the chance to claim tax deductions under various sections of the Income-tax Act, 1961.
Under Section 80C of the Income-tax Act, taxpayers can save tax on up to ₹1.5 lakh of their income by investing in approved schemes. Some of these schemes even allow guardians to make investments in the name of their children and claim tax benefits. Two popular options for such investments are the Public Provident Fund and the Sukanya Samriddhi Yojana.
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A guardian can open a PPF account for a minor child. The maximum amount you can invest in a PPF account in a year is ₹1.5 lakh. You can open a PPF account at many banks or post offices. The investment matures after 15 years, and the returns are fully guaranteed by the Government of India.
The Sukanya Samriddhi Yojana is a special scheme for girl children. A guardian can open an SSY account for a girl aged up to 10 years. The maximum investment allowed in a year is ₹1.5 lakh. Currently, the SSY account offers an interest rate of 8.2%, and the returns are also fully guaranteed by the Government of India.
If you don’t make your tax-saving investments by March 31, 2025, you won’t be able to claim deductions under Section 80C for the financial year 2024-25. This means you will end up paying more tax.
Even if you chose the new tax regime at the start of the financial year, you could still switch to the old regime while filing your Income-tax Return. This allows you to take advantage of tax-saving investments under Section 80C.
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Starting from the next financial year (2025-26), you can invest in the National Pension System (NPS) in your child’s name under the NPS Vatsalya scheme. This will allow you to claim an additional tax deduction of ₹50,000. However, this benefit will not apply in the current financial year (2024-25).
If you want to save tax for FY 2024-25, make sure to complete your investments in schemes like PPF or SSY before March 31, 2025. These investments not only help you save tax but also secure your child’s future with guaranteed returns
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