31st March Deadline: Eight important financial tasks must be completed before the March 31st deadline for fiscal year 2025-26. These include advance tax payments, submitting investment proofs, tax-saving investments under Section 80C and NPS, minimum deposits in PPF/SSY, reviewing capital gains, and home loan statements.
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31st March Deadline: There’s not much time left before the financial year 2025-26 ends, with March 31st being the deadline. This is considered the most crucial time for tax planning, investment, and reviewing financial documents.
Completing certain essential tasks on time can not only save tax but also avoid penalties and excessive TDS deductions. In this article, we’ll share eight important financial tasks that must be completed before March 31st. Otherwise, you could face a hefty penalty.
1. Last Advance Tax Installment
If your income isn’t limited to salary, such as from freelancing, business, or investments, you may be required to pay advance tax. According to the rules, 100% of your total tax liability must be paid by March 15, 2026. Non-payment or short payment may attract interest under sections 234B and 234C of the Income Tax Act.
2. Investment Proofs to the Employer
Most companies stop submitting investment proofs in February or March. This includes documents such as life insurance premiums, ELSS investment statements, PPF records, home loan interest certificates, health insurance premiums, and rent receipts for HRA. If proofs are not submitted on time, higher TDS may be deducted from March salaries.
3. Complete Tax-Saving Investments
If you have chosen the old tax regime, this month is the last opportunity to make tax-saving investments. Section 80C of the Income Tax Act allows deductions of up to ₹1.5 lakh. Options for this include PPF, Equity-Linked Savings Scheme (ELSS), and Sukanya Samriddhi Yojana.
4. Save additional tax by investing in NPS
Additional tax can be saved by investing in the National Pension System (NPS). It offers an additional deduction of up to Rs 50,000 under section 80CCD(1B), over and above the limit under 80C.
5. Minimum Amount in PPF and SSY Accounts
Some government savings schemes require a minimum investment to keep the account active. A minimum annual deposit of ₹500 is required for PPF and ₹250 for Sukanya Samriddhi Yojana. Failure to do so may result in the account becoming inactive and incur additional fees to reactivate.
6. Review Capital Gains from Investments
Be sure to review the profits earned from investments made during the year, such as shares, mutual funds, or the sale of property. This will help you accurately calculate short-term and long-term capital gains and estimate your tax liability.
7. Information on Home Loan Interest and Principal
If you have a home loan, download your annual loan statement or interest certificate from your bank or financial institution. Under Section 24(b) of the Income Tax Act, home loan interest is tax deductible up to ₹2 lakh.
8. Consider Tax Gain Harvesting
If you’ve invested in stocks or equity mutual funds for more than 12 months, it may be beneficial to book some profits before the end of the financial year. Under Section 112A, long-term capital gains up to Rs 1.25 lakh from listed stocks and equity mutual funds are tax-free in a financial year.
If all these necessary tasks are completed before March 31, last-minute rush can be avoided and the available tax benefits can be fully utilized.
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