Tax Saving Deadline March 31: Key Financial Tasks You Must Complete

As the financial year approaches its close on March 31, 2026, taxpayers and salaried individuals must complete several important financial tasks to maximise tax savings and avoid compliance-related issues. Financial experts advise reviewing documents, confirming deductions, and checking insurance coverage before the deadline to prevent higher tax deductions or unexpected financial complications. Completing these steps on time can also ensure a smoother transition into the new financial year.

Advance Tax Deadline

One of the key dates taxpayers must keep in mind is March 15, which marks the deadline for paying the final instalment of advance tax for the financial year 2025-26. Individuals whose estimated tax liability exceeds ₹10,000 are required to pay advance tax. Failure to do so may lead to interest charges on the outstanding amount.

However, senior citizens aged 60 years or above are exempt from paying advance tax if they do not earn income from a business or profession during the financial year. Those who earn income from a business or profession must still comply with the advance tax requirement.

Completing Tax-Saving Investments

Taxpayers who want to claim deductions for the financial year 2025-26 must complete their tax-saving investments before March 31, 2026. Investments made after this date will only be eligible for deductions in the next financial year.

Individuals opting for the old tax regime can claim deductions under Section 80C of the Income Tax Act, 1961, by investing in instruments such as the Public Provident Fund (PPF), Sukanya Samriddhi Account (SSA), and the National Pension System (NPS). Section 80C allows deductions of up to ₹1.5 lakh through eligible investments, including EPF, PPF, and ELSS mutual funds.

It is important to note that deductions under sections such as 80C, 80D, and 80G are available only under the old tax regime. Taxpayers who have chosen the new tax regime for FY 2024–25 do not need to make investments solely for tax-saving purposes because the regime offers lower tax rates but limited deductions.

Submitting Investment Proofs to Employers

Employees who had declared tax-saving investments earlier in the financial year must submit the relevant supporting documents to their employers before the payroll cut-off date. These documents may include ELSS mutual fund statements, life insurance premium receipts, PPF deposit proofs, and rent receipts for claiming House Rent Allowance (HRA).

If these proofs are not submitted within the required timeframe, employers may deduct a higher amount of Tax Deducted at Source (TDS) from the employee’s salary during the remaining months of the financial year. However, such deductions can still be claimed while filing the Income Tax Return (ITR).

Reviewing Home Loan Interest Details

Individuals who have taken a home loan should download the annual statement or interest certificate from their lending bank before the financial year ends. Under Section 24(b) of the Income Tax Act, taxpayers can claim deductions of up to ₹2 lakh on home loan interest payments.

Additionally, the principal repayment component of a home loan qualifies for deductions under Section 80C, subject to the overall limit of ₹1.5 lakh.

Claiming Health Insurance Deduction Under Section 80D

Taxpayers can claim deductions for premiums paid towards health insurance policies under Section 80D of the Income Tax Act, 1961. A deduction of up to ₹25,000 can be claimed for premiums paid for self and family. This limit increases to ₹50,000 if the insured individual is aged 60 years or above.

For parents, taxpayers can claim a deduction of up to ₹75,000 if the parents are senior citizens, or up to ₹50,000 if they are aged below 60 years.

Considering Tax Gain Harvesting

Investors who hold equity shares or equity mutual funds for more than one year may consider tax gain harvesting. Under Section 112A, long-term capital gains (LTCG) of up to ₹1.25 lakh from listed shares and equity mutual funds are exempt from tax.

According to Gopal Bohra, Partner–Tax at NA Shah Associates, taxpayers should periodically review their tax position to optimise capital gains. If no long-term capital gains are realised during the year, the exemption limit of ₹1,25,000 may remain unused. Investors may therefore rebalance their portfolios by realising long-term capital gains up to this limit without incurring any tax liability.

Minimum Deposits in Government Savings Schemes

Several government-backed savings schemes require minimum yearly contributions to keep accounts active and retain tax benefits. These include schemes such as the Public Provident Fund (PPF) and the Sukanya Samriddhi Yojana. Taxpayers should ensure that the required minimum deposit is made before March 31, 2026.

Uploading the Statement of Foreign Income

The deadline for uploading the statement of foreign income offered to tax, along with details of tax deducted or paid on such income for the previous year 2022–23, is March 31. This step is necessary for taxpayers who wish to claim foreign tax credit, provided their income tax return was filed within the time limits specified under Section 139(1) or Section 139(4).

Common Mistakes Taxpayers Should Avoid

Financial planners caution that many taxpayers make avoidable errors in the final weeks of the financial year. Common mistakes include submitting incomplete documents, making rushed investments without assessing risks, or failing to report income earned from interest or investments.

Experts recommend organising financial documents in advance and carefully reviewing income and deductions to avoid inaccurate tax calculations or missed benefits.