March 31 alert: These tax, investment and banking deadlines you shouldn’t miss

As the financial year draws to a close, March 31 has once again become a critical deadline for taxpayers, investors and banking customers across India. A number of financial schemes, regulatory provisions and special offers are set to end or change from April 1, prompting individuals to take last-minute action to avoid higher penalties, lost investment opportunities or altered benefits. 

From the final opportunity to change submit your updated tax returns to changes in credit card reward structures and deadlines for buying that critical insurance cover, the end of the financial year marks a period of significant financial transitions. 

Updated income tax return deadline 

Another important date concerns taxpayers who need to file an updated income tax return (ITR). Taxpayers can submit an updated return within two years of the relevant assessment year, but the additional tax penalty increases after March 31. 

Those filing before the deadline must pay an additional 25% of the tax and interest due, while returns filed after March 31 may attract a higher 50% additional liability. Read more here

Changes in UPI mobile number verification rules 

Digital payments are also seeing a regulatory update. New rules require Unified Payments Interface (UPI) apps to obtain explicit user consent before assigning or updating a numeric UPI ID linked to a mobile number. 

Users will not be automatically enrolled in this feature and must actively opt in, while payment apps will not be allowed to seek consent during transactions to avoid confusion. Read more here

Complete insurance purchase 

As the financial year draws to a close, a familiar pattern emerges across India’s retail investing landscape — last-minute insurance purchases driven largely by tax-saving urgency. Even though, industry experts warn that treating insurance as a deadline-driven decision, rather than a core financial planning tool, can lead to suboptimal outcomes for investors, several still keep it to save last-minute ta targets. Read more here

Special bank fixed deposit schemes nearing end 

Several banks have also introduced limited-period special fixed deposit (FD) schemes offering higher-than-usual interest rates for specific tenures. 

These schemes — offered by institutions such as SBI, IDBI Bank, Indian Bank, HDFC Bank and Punjab & Sind Bank — are set to close around the end of the financial year, making March 31 the last opportunity for investors to lock in these rates. 

PM Internship Scheme application deadline 

The government’s PM Internship Scheme (PMIS), announced in the Union Budget 2024-25 to provide internship opportunities to young people, also has its application deadline ending on March 31. Candidates interested in participating in the programme must complete their registration before the closing date to remain eligible. 

Tax-saving investment cut-off 

For many salaried individuals, March 31 is also the final day to complete tax-saving investments for the financial year. 

Those opting for the old tax regime must ensure that eligible deductions — including investments under Section 80C or other qualifying instruments — are completed before the financial year ends to reduce their taxable income. Read more here

Interest rate review for small savings schemes 

In addition, the government typically reviews interest rates for post office small savings schemes every quarter, and any revisions for the April0-June quarter are announced by the end of March. Investors often watch this announcement closely as it can affect returns on popular savings instruments. Read more here

Financial planners say the last days of March often become a rush period as individuals scramble to complete tax filings, investments and financial paperwork. Missing these deadlines can lead to higher taxes, lost investment opportunities or reduced benefits, making timely action essential for both taxpayers and investors as the new financial year begins.