7 Key Financial Tasks to Complete Before March 31, 2026 Deadline

As the financial year draws to a close on March 31, 2026, Taxpayers and salaried individuals must complete several important financial tasks to maximise tax savings and avoid compliance issues. Experts recommend reviewing documents, confirming deductions, and checking insurance coverage to prevent higher tax outgo or last-minute complications.

Advance Tax Deadline

One of the most important deadlines is March 15, which marks the final instalment of advance tax for the financial year 2025–26. Individuals with an estimated tax liability exceeding Rs 10,000 must pay advance tax, failing which interest may be levied. Senior citizens aged 60 years or above are exempt from advance tax if they do not have income from a business or profession. However, those earning such income must comply.

Completing Tax-Saving Investments

Taxpayers aiming to claim deductions for FY 2025–26 must complete tax-saving investments before March 31, 2026. Investments made after this date will qualify for the next financial year. Under Section 80C of the Income Tax Act, 1961, individuals opting for the old tax regime can claim deductions up to Rs 1.5 lakh through instruments such as PPF, Sukanya Samriddhi Account, EPF, ELSS Mutual Funds, and NPS. Deductions under Sections 80C, 80D, and 80G are available only under the old tax regime, while the new regime offers lower tax rates with limited deductions.

Submitting Investment Proofs to Employers

Employees must also submit proof of declared investments to their employers before the payroll cut-off date. Documents include ELSS statements, life insurance premium receipts, PPF proofs, and rent receipts for HRA claims. Failure to submit these may result in higher TDS deductions, although claims can still be made while filing Income Tax Returns.

Reviewing Home Loan Interest Details

Home loan borrowers should download their annual interest certificate before year-end. Under Section 24(b), deductions up to Rs 2 lakh can be claimed on interest payments. Additionally, the principal repayment qualifies for deduction under Section 80C within the Rs 1.5 lakh limit.

Claiming Health Insurance Deduction Under Section 80D

Health insurance premiums paid during the year are eligible for deductions under Section 80D. Taxpayers can claim up to Rs 25,000 for self and family, which increases to Rs 50,000 for senior citizens. For parents, the deduction is up to Rs 75,000 if they are senior citizens, or Rs 50,000 if below 60 years.

Considering Tax Gain Harvesting

Investors may also consider tax gain harvesting. Under Section 112A, long-term capital gains up to Rs 1.25 lakh from listed equity shares and equity mutual funds are exempt from tax. Experts suggest reviewing portfolios and booking gains within this limit to optimise tax benefits.

Minimum Deposits in Government Savings Schemes

It is also important to maintain minimum deposits in government-backed schemes such as PPF and Sukanya Samriddhi Yojana to keep accounts active and retain tax benefits before the March 31 deadline.

Uploading the Statement of Foreign Income

Taxpayers with foreign income must upload the statement of such income along with details of tax paid for FY 2022–23 by March 31 to claim foreign tax credit, provided the Income Tax Return was filed within the prescribed timelines.

Common Mistakes Taxpayers Should Avoid

Financial planners advise avoiding common mistakes such as incomplete documentation, last-minute investments without proper evaluation, and failure to report interest or investment income. Proper planning and timely action can help ensure accurate tax filing and maximum benefits.

Disclaimer: The article is for informational purposes only and not investment advice.