New Delhi: March 31, 2026 is a very important date as the financial year 2025–26 will come to end. People who are yet to review their taxes, investments, and financial plans, need to hurry up and complete the financial tasks so that they could save tax, avoid penalties and stay away from the last-minute rush.
Advance tax
If an individual has income other than salary, such as from freelancing, interest, or rental income, the person is required to pay advance tax. According to the rules, it is mandatory to pay 100 percent of the total tax liability by March 15, 2026. If timely advance tax is not paid, interest may be charged under Sections 234B and 234C of the Income Tax Act.
Submission of investment proofs
Several companies ask their employees to submit investment proofs by February or March. People who declared investments at the beginning of the year to save tax, now it is the time to submit the necessary documents, such as Life insurance premium receipt, ELSS investment statement, PPF deposit receipt, Home loan interest certificate, Health insurance premium receipt, and Rent receipt for HRA.
Complete tax-saving investments
If you have opted Old Tax regime, this is the last opportunity to make tax-saving investments. Under Section 80C, you can claim deductions of up to Rs 1.5 lakh. People can opt to invest in Public Provident Fund (PPF), Equity Linked Saving Scheme (ELSS) and Sukanya Samriddhi Yojana
National Pension System
If an individual wants to save additional tax, the person can invest in the National Pension System (NPS). Under Section 80CCD(1B), an additional tax deduction of up to Rs 50,000 is available. This deduction is separate from the Rs 1.5 lakh limit under Section 80C.
PPF and Sukanya minimum investment
In some government savings schemes such as PPF and Sukanya Samriddhi Yojana, a minimum investment every financial year is necessary to keep the account active. For Public Provident Fund scheme, the minimum investment is Rs 500 per financial year. In the Sukanya Samriddhi Yojana, the minimum investment is Rs 250. If the minimum investment is not made, the account becomes inactive and an additional fee may be required to reactivate it.
Review capital gains on investments
Before the financial year ends, one should review all investment transactions such as assessing profits or losses from equity shares, mutual funds, and property.
Home Loan interest
If a person has a home loan, be sure to download the annual statement or interest certificate from the bank. Under Section 24(b), tax exemption of up to Rs 2 lakh can be claimed on home loan interest. Deductions on principal repayment are available under Section 80C.
Option of tax gain harvesting
The equity shares or equity mutual funds investors who have deposited money for over a year, can opt for tax gain harvesting. Under Section 112A, long-term capital gains from listed shares and equity mutual funds up to Rs 1.25 lakh are not taxed.