The financial year 2025-26 ends in just a few days. And if your tax planning is still pending, March 31 is the deadline for most investments, submissions, and year-end actions.
After that, deductions for this year are gone, interest starts on unpaid taxes, and some things can’t be fixed later.
So here’s what you need to wrap up before the financial year closes.
1. Complete your tax-saving investments (Section 80C, 80D, 80CCD)
If you’re opting for the old tax regime, investments must be made by March 31 to be eligible for deduction this FY 2025-26.
a) You can claim PPF, ELSS mutual funds, NPS, NSC, tax-saving FDs, LIC premiums, Sukanya Samriddhi Yojana, and children’s tuition fees up to ₹1.5 lakh under Section 80C.
b) You can also claim up to ₹25,000 for self and family, and up to ₹50,000 if the insured person is a senior citizen under Section 80D.
c) Under Section 80CCD(1B) an extra ₹50,000 deduction is available for NPS contributions, over and above the ₹1.5 lakh Section 80C limit.
2. Submit your investment proofs to employer
If you declared tax-saving investments at the start of the financial year, this is the time where employers verify them.
You might need to produce documents including PPF receipts, ELSS statements, LIC premium receipts, health insurance proofs, home loan interest certificates, rent receipts for HRA, and NPS contribution records.
These proof submission follows payroll timelines, not just March 31, so missing your company’s cut-off can directly affect your March salary.
If proofs aren’t submitted in time, higher TDS will be deducted. You can recover it later while filing your return, but it creates unnecessary cash outflow now.
3. Pay any pending advance tax
The final advance tax installment was due on March 15, 2026. If you missed it and still have a tax liability, payments made until March 31 are treated as advance tax.
Who needs to pay advance tax?
- Anyone with tax liability exceeding ₹10,000 after TDS
- Freelancers and self-employed individuals
- People with rental income, capital gains, or interest income beyond salary
More importantly, if at least 90% of total tax liability is paid by March 31, penalties under Section 234B can be avoided.
Interest under Sections 234B and 234C can go up to 1% per month on unpaid amounts.
4. Verify Form 26AS and AIS
Before the year ends, reconcile Form 26AS and AIS with your own records to avoid discrepancies. You should check:
- TDS deducted by employer, banks, and other deductors
- TCS (Tax Collected at Source) on foreign remittances, sale of goods
- High-value transactions reported under SFT (Statement of Financial Transactions) like large mutual fund investments, property transactions, significant credit card spends, or cash deposits.
Any mismatch here can lead to notices later. So if something looks incorrect, raise a correction request on the income tax portal while the window is still open.
5. Use tax loss and tax gain harvesting
If you hold stocks or equity mutual funds, this is your last window to optimize capital gains tax through harvesting strategies.
Tax loss harvesting allows you to sell your loss-making investments to offset gains and reduce your taxable income. Later, you can reinvest if you still believe in the stock.
Here, short-term losses can be adjusted against both short-term and long-term gains, while long-term losses can only offset long-term gains.
Tax gain harvesting works on the exemption under Section 112A, where up to ₹1.25 lakh of long-term capital gains on listed equities is tax-free. If you have unrealised gains on investments held for over 12 months, consider booking gains within this limit and reinvesting. This resets your cost base and utilises the exemption each year.
Both strategies must be executed before March 31 to count for this financial year.
6. Maintain minimum contributions in government schemes
Certain government-backed schemes require a minimum annual contribution to stay active.
PPF requires at least ₹500 per year, and Sukanya Samriddhi Yojana requires ₹250.
If these are not met before March 31, your accounts will become inactive, and will require additional steps and penalties to restore.
7. File ITR-U for past years
ITR-U is allows you to correct errors or omissions in previously filed returns, including unreported income or incorrect claims.
The deadline to file ITR-U for FY 2021–22 (AY 2022–23) is March 31, 2026.
Though you’ll be charged additional tax and interest when you file it, it’ll avoid notices in the future.
8. Claim foreign tax credit
If you’ve earned income abroad and paid tax outside India, you need to submit Form 67 to claim Foreign Tax Credit.
This applies to individuals earning foreign salary, freelance income from overseas clients, or investors with foreign investment.
The form must be filed before the end of the assessment year or before filing your return, whichever is earlier. If you miss this step, you’ll mis out on tax credits, and hence you’ll have to pay more tax in India.
9. Download your home loan interest certificates
If you have a home loan, download your annual interest certificate from your lender before March 31. This document is required to claim:
- Interest deduction of up to ₹2 lakh for self-occupied property under Section 24(b).
- Principal repayment up to ₹1.5 lakh (included in the overall Section 80C limit) under Section 80C.
Also ensure that EMIs and interest payments are completed within the financial year for eligibility.
10. Decide your tax regime
The new tax regime is the default, but you can still opt for the old regime while filing your return.
Before March 31, calculate your tax liability under both regimes based on your actual income and deductions.
- Old regime works better if you have significant deductions (80C, 80D, HRA, home loan interest)
- New regime offers lower rates with limited deductions (mainly standard deduction and employer NPS contribution)
You should be clear on which structure works better for you before filing your return.
So what financial task are you prioritizing this week?