Taxpayers Must Complete Key Deadlines by March 31

End-of-Financial-Year Checklist for Taxpayers

As the financial year approaches its end on March 31, taxpayers must complete several important tasks to maximize tax savings and avoid compliance-related issues.

Advance Tax Deadline The last day to pay the final instalment of advance tax for FY 2025–26 is March 15. Taxpayers with an estimated tax liability exceeding Rs 10,000 must ensure timely payment to avoid interest charges on the outstanding amount. Senior citizens aged 60 years or above are exempt from paying advance tax if they do not have income from business or profession during the financial year.

Investing for Tax Deduction Investors must make tax-saving investments before March 31 to claim deductions for the financial year 2024–25. Investments made after this date will only be eligible for tax deductions in the next financial year, 2025–26. Under the old tax regime, taxpayers can invest in instruments such as the Provident Fund (PPF), Sukanya Samriddhi Account (SSA), and the National Pension System (NPS) to claim tax benefits under Section 80C of the Income Tax Act, 1961.

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Submit Investment Proofs to Your Employer Employees who declared tax-saving investments earlier in the financial year must submit the supporting documents to their employer before the payroll cut-off date. Failure to submit the proofs in time may result in a higher amount of tax at source (TDS) being deducted from the salary during the remaining months of the financial year.

Home Loan Interest and Health Insurance Deductions Taxpayers can claim a deduction of up to Rs 2 lakh on home loan interest under Section 24(b). Deductions on principal repayment are available under Section 80C. Under Section 80D, taxpayers can claim deductions for premiums paid towards health insurance policies, with a maximum deduction of Rs 25,000 for self and family, and Rs 75,000 for parents.

Tax Gain Harvesting Investors holding equity shares or equity mutual funds for more than one year can consider tax gain harvesting under Section 112A. Long-term capital gains of up to Rs 1.25 lakh from listed shares and equity mutual funds are exempt from tax.

Uploading the Statement of Foreign Income The deadline to upload the statement of foreign income offered to tax, along with tax deducted or paid on such income for the previous year 2022–23, is March 31.

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Common Mistakes to Avoid Financial planners caution that many taxpayers make avoidable errors in the final weeks of the financial year, including submitting incomplete documents, making rushed investments without assessing risks, or failing to report income from interest or investments. Experts recommend preparing documents in advance and reviewing finances carefully to ensure a smoother transition into the new financial year.