March 31 checklist: From tax harvesting to investments, what you must do before deadline

Tax deadline 2026: As the financial year 2025–26 draws to a close, March 31 emerges as one of the most critical deadlines for taxpayers, investors, and salaried individuals alike. The date marks the cut-off for tax-saving investments, compliance actions, and portfolio adjustments that can significantly impact overall tax liability.

With income, deductions, and financial transactions all locked in after this deadline, experts advise taxpayers to take a structured approach rather than relying on last-minute decisions.

Why March 31 matters

The financial year in India runs from April 1 to March 31, and all income earned and investments made within this period are considered for tax calculations. Missing key actions before this deadline can lead to higher tax outgo, penalties, or missed deductions.

According to tax guidance, taxpayers must complete investments under Sections 80C, 80D, and NPS, finalise tax harvesting strategies, and ensure compliance requirements are met before the financial year closes.

1. Complete tax-saving investments

For those opting for the old tax regime, March 31 is the last opportunity to exhaust deductions under Section 80C (up to ₹1.5 lakh). Popular instruments include:

Equity Linked Savings Schemes (ELSS) Public Provident Fund (PPF) Life insurance premiums Sukanya Samriddhi Yojana (SSY)

Additionally, contributions to the National Pension System (NPS) can fetch an extra ₹50,000 deduction under Section 80CCD(1B), while health insurance premiums under Section 80D further reduce taxable income.

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2. Use tax harvesting strategies

Investors can optimise taxes through capital gains harvesting. Long-term capital gains (LTCG) of up to ₹1.25 lakh on equity investments can be booked tax-free. This allows investors to sell and reinvest, effectively resetting the cost base.

Similarly, tax-loss harvesting enables investors to sell underperforming assets to book losses, which can then be set off against gains:

Short-term losses can offset both short- and long-term gains Long-term losses can offset only long-term gains

Unutilised losses can be carried forward for up to eight years, but only if booked before March 31.

3. Pay advance tax and avoid penalties

Taxpayers with a tax liability exceeding ₹10,000 must ensure advance tax payments are completed. Failure to do so can attract interest under Sections 234B and 234C, typically at 1% per month.

For freelancers, traders, and business owners, this step is particularly critical to avoid last-minute financial strain.

4. Submit investment proofs to employers

Salaried individuals must submit proof of investments and expenses to their employers to ensure accurate TDS deductions. Key documents include:

Rent receipts for HRA claims Insurance premium receipts ELSS and PPF investment proofs Home loan interest certificates

Failure to submit these on time can result in higher TDS deductions from March salary payouts.

5. Verify AIS and Form 26AS

The Annual Information Statement (AIS) and Form 26AS provide a consolidated record of financial transactions, including interest income, dividends, and high-value transactions.

Taxpayers should cross-check these documents to avoid mismatches, which could trigger tax notices or delays in refunds.

6. Review capital gains and portfolio

March-end is also a good time to review capital gains across equity, mutual funds, and other assets. This helps in:

Estimating tax liability Adjusting portfolio allocations Planning redemptions strategically

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7. Choose between old vs new tax regime

Selecting the right tax regime is a key decision. The old regime allows multiple deductions, while the new regime offers lower tax rates but limited exemptions.

A last-minute evaluation based on income and deductions can lead to meaningful tax savings.

8. Check financial accounts and compliance

Basic housekeeping tasks should not be overlooked:

Ensure PAN-Aadhaar linkage Verify bank account details for refunds Update nominee details across investments Keep contact details updated on the income tax portal The bottom line

March 31 is not just a deadline—it is an opportunity to optimise taxes and align financial planning. From tax harvesting to compliance checks, each step contributes to reducing taxable income and improving post-tax returns.

A proactive approach, rather than last-minute action, can make a tangible difference to an investor’s overall financial outcome.