Alert: The March 31st Deadline is Approaching! Complete These 8 Tasks Today to Save on Taxes and Avoid Penalties..
As the final day of the financial year 2025-26—namely March 31, 2026—draws near, it becomes imperative to review your taxes, investments, and financial planning. By completing certain essential tasks right now, you can not only avoid penalties but also avail yourself of various tax exemptions. So, let's explore 8 crucial financial tasks that should be completed before March 31.
1. Pay the Final Installment of Advance Tax
If your income is not limited solely to a salary—and you also earn from rent, freelancing, or a business—you may be liable to pay Advance Tax.
According to the rules, it is mandatory to pay 100% of your total tax liability by March 15, 2026.
If Advance Tax is not paid on time or if an insufficient amount is paid, interest may be levied under Sections 234B and 234C of the Income Tax Act.
2. Submit Proof of Investments to Your Employer
Most companies set a deadline for submitting proof of investments by February or March.
If you had declared details regarding tax-saving investments or expenses at the beginning of the financial year, it is now mandatory to submit the corresponding proof.
Examples include:
Receipts for Life Insurance Premiums
Statements for ELSS investments
Records of PPF deposits
Home Loan Interest Certificates
Receipts for Health Insurance Premiums
Rent receipts for HRA claims
All these deductions are typically available under Sections 80C, 80D, and 80CCD(1B).
If the proof is not submitted on time, a higher amount of TDS (Tax Deducted at Source) may be deducted from your March salary.
These exemptions are available exclusively under the Old Tax Regime.
3. Complete Your Tax-Saving Investments
If you have opted for the Old Tax Regime, this is your final opportunity to make tax-saving investments for the current financial year.
Under Section 80C, you can avail of a maximum tax deduction of up to ₹1.5 lakh. For this purpose, you can invest in the following schemes:
Public Provident Fund (PPF)
Equity Linked Savings Scheme (ELSS)
Sukanya Samriddhi Yojana (SSY)
4. Save Extra Tax by Investing in NPS
If you wish to achieve additional tax savings, you can invest in the National Pension System (NPS).
Under Section 80CCD(1B), this offers an additional tax deduction of up to ₹50,000.
This deduction is available over and above the ₹1.5 lakh limit prescribed under Section 80C.
For this reason, it is considered an excellent option for last-minute tax savings.
5. Ensure You Deposit the Minimum Amount in PPF and SSY
In certain government-backed savings schemes, it is mandatory to make a minimum annual investment; otherwise, the account may become inactive.
Examples of such options include:
PPF (Public Provident Fund)
Minimum Investment: ₹500 per year
Maximum Investment: ₹1.5 lakh
Sukanya Samriddhi Yojana (SSY)
Minimum Investment: ₹250 per year
If the minimum amount is not deposited, you may be required to pay a penalty to reactivate the account.
6. Review Your Capital Gains
Before the financial year concludes, it is essential to review your investment transactions for the entire year.
This may include investments in shares, mutual funds, and the sale of property.
This exercise helps you determine the extent of your short-term and long-term capital gains, as well as the corresponding tax liability.
7. Check Home Loan-Related Documents
If you have availed of a home loan, ensure you download your annual loan statement and interest certificate from your bank or lender.
You may be eligible for tax deductions on these under Section 24(b).
A tax deduction of up to ₹2 lakh is available on home loan interest payments.
It is also mandatory to submit these documents to your employer.
8. Consider Tax-Gain Harvesting
This applies if you have held shares or equity mutual funds for a period exceeding 12 months. Therefore, you may consider booking some profits before the financial year ends.
Under Section 112A, Long-Term Capital Gains (LTCG) of up to ₹1.25 lakh are tax-free.
Any gains exceeding this limit are subject to a tax of 12.5%.
With proper planning—by selling shares and reinvesting—you can make effective use of this tax exemption.
Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
