31 March deadline: 8 financial tasks you should complete now

As the financial year comes to an end on 31 March 2026, this is the right time to review your finances, taxes, and investments. Taking a few key steps now can help you stay compliant, avoid penalties, and make the most of available tax benefits.

If you earn income beyond your salary, you may need to pay advance tax. To avoid penalties, 100% of your tax liability should be paid by 15 March 2026.

If advance tax is not paid on time or is underpaid, interest may be charged under Section 234B and Section 234C of the Income Tax Act.

Most employers close the investment proof submission window in February or March.

If you declared deductions earlier in the year, you now need to submit proof for them. Common documents include:

• Life insurance premium receipts

• ELSS investment statements

• PPF contribution records

• Home loan interest certificates

• Health insurance premium receipts

• Rent receipts for HRA

These deductions usually fall under Section 80C, Section 80D, and Section 80CCD(1B) of the Income Tax Act.

If you fail to submit the required proofs, your employer may deduct higher TDS from your March salary. Also note that these deductions apply only if you have decided to go with the old tax regime.

For people who have opted for the old tax regime, this month is the last chance to make tax-saving investments for the current financial year.

Under Section 80C, taxpayers can claim deductions of up to ₹1.5 lakh through investments such as:

• Public Provident Fund (PPF)

• Equity Linked Savings Scheme (ELSS)

• Sukanya Samriddhi Yojana

If you still want to save additional tax, contributing to the National Pension System (NPS) can help.

You can claim an extra deduction of up to ₹50,000 under Section 80CCD(1B). This benefit is over and above the ₹1.5 lakh limit under Section 80C, making it one of the most effective last-minute tax-saving options for those following the old tax regime.

Some government-backed savings schemes require minimum annual contributions to keep the account active.

For example:

Public Provident Fund (PPF)

Minimum contribution: ₹500 per year

Maximum contribution: ₹1.5 lakh

Minimum contribution: ₹250 per year

If the minimum amount is not deposited, the account may become inactive and may require additional charges to reactivate.

This is also a good time to review all your investment transactions during the year, including:

• Equity shares

• Mutual funds

• Property sales

Calculate both short-term and long-term capital gains and estimate the tax payable.

If you have a home loan, download your annual loan statement or interest certificate from your lender.

Tax benefits include: Section 24(b): Interest deduction of up to ₹2 lakh

Make sure these documents are submitted to your employer.

Investors holding equity shares or equity-oriented mutual funds for more than 12 months may consider booking some profits before the financial year ends.

Under Section 112A, long-term capital gains (LTCG) from listed equity shares and equity mutual funds are tax-free up to ₹1.25 lakh in a financial year. Gains above this limit are taxed at 12.5%.

By strategically selling and reinvesting, investors can utilise this tax-exempt limit efficiently.

Taking care of these steps before 31 March can help you avoid last-minute stress and make the most of available tax benefits.