Complete Your Tax-Related Tasks Before March 31 or Pay 50% Extra Tax

March is nearing its end, and it’s crucial to complete several financial tasks before March 31. Failing to do so before the financial year closes could lead to penalties. Today, we bring you important information on how to avoid paying an extra 50% tax by completing these tasks on time.

Income Tax Department’s Advisory

The Income Tax Department has issued an advisory urging taxpayers to file their Updated Income Tax Returns (ITR-U) before March 31, 2025. Filing an updated ITR helps taxpayers voluntarily disclose any undeclared income or rectify mistakes in previously filed returns. Doing so will reduce penalties and additional financial burdens.

4.64 Lakh Updated ITRs Filed

Minister of State for Finance, Pankaj Chaudhary, informed the Lok Sabha in a written reply that as of February 28, 2024, a total of 4.64 lakh updated ITRs have been filed for the current assessment year (2024-25), contributing ₹431.20 crore in taxes. In the previous financial year (2023-24), over 29.79 lakh updated ITRs were filed, leading to additional tax payments of ₹2,947 crore.

What is an Updated ITR?

An Updated ITR allows taxpayers to correct mistakes or add missing details to their previously filed returns. If any income was left undisclosed or errors were made while filing the original return, taxpayers can rectify them by filing an updated ITR, ensuring compliance with tax regulations and avoiding penalties.

Tax Compliance Timeline

March 31, 2025: Last date to file an updated ITR-U with a reduced penalty.

February 28, 2024: 4.64 lakh updated ITRs filed for AY 2024-25, contributing ₹431.20 crore in taxes.

FY 2023-24: 29.79 lakh updated ITRs filed, generating ₹2,947 crore in additional tax.

Failure to update ITR before the deadline could lead to an extra 50% tax penalty.

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ATM Withdrawals to Get Costlier from May 1: Higher Fees to Be Charged

If you frequently withdraw cash from ATMs, it's time to reconsider your habit. Starting May 1, withdrawing money from ATMs will become more expensive. The Reserve Bank of India (RBI) has approved an increase in ATM interchange fees for banks. As a result, withdrawals and even balance inquiries from ATMs outside your home bank’s network will now cost more than before.

Increased ATM Charges

Earlier, withdrawing cash from an ATM belonging to another bank cost ₹17 per transaction. This has now been increased to ₹19. Similarly, checking your balance at another bank’s ATM used to cost ₹6, but this has now been raised to ₹7.

Free Transaction Limit

Charges for ATM transactions at other banks apply only after the free transaction limit is exceeded. In metro cities, customers can make up to five free transactions per month at ATMs of banks other than their own. In non-metro cities, the free transaction limit is three per month.

Why is the Fee Increasing?

The RBI has approved the National Payments Corporation of India’s (NPCI) proposal to raise ATM fees. This decision comes amid demands from White Label ATM (WLA) operators, who argued that rising operational costs made it difficult to sustain services at old fee structures.

What are White Label ATMs?

To expand ATM services in small towns and villages, RBI introduced White Label ATMs (WLAs) under the Payment and Settlement Systems Act 2007. These ATMs do not belong to any specific bank but provide services like cash withdrawals, bill payments, mini statements, checkbook requests, and cash deposits using debit and credit cards.

ATM Fee Hike

📅 Before May 1, 2024

• ATM withdrawal from another bank: ₹17
• Balance inquiry at another bank’s ATM: ₹6

📅 From May 1, 2024

• ATM withdrawal from another bank: ₹19
• Balance inquiry at another bank’s ATM: ₹7

📅 Free Transaction Limits

• Metro cities: 5 free transactions per month at non-home bank ATMs

• Non-metro cities: 3 free transactions per month at non-home bank ATMs