Tick-tock to March 31: Tax-saving moves you shouldn’t miss before FY26 ends

With the financial year 2025–26 coming to a close, taxpayers have only a limited window left to complete important tax-saving investments and compliance-related formalities before the March 31, 2026 deadline. The last few days of the financial year are crucial, as several deductions, exemptions, and statutory requirements are available only if the required payments, investments, or filings are completed within the prescribed timelines.

Tax experts say that reviewing financial positions before the year-end can help taxpayers optimise tax outgo, claim eligible deductions, and avoid penalties, interest, or scrutiny later.

CA (Dr.) Suresh Surana said, “As the financial year 2025–26 approaches its close, taxpayers should undertake a comprehensive review of their financial and compliance obligations before 31 March 2026. Completing key tasks within the prescribed timelines can help optimise tax outflows, secure eligible deductions, and avoid interest, penalties, or scrutiny from tax authorities.”

Complete tax-saving investments

Taxpayers who have opted for the old tax regime should ensure that investments eligible under Section 80C are completed before March 31. Contributions to instruments such as PPF, ELSS, LIC premiums, NSC, Sukanya Samriddhi Yojana, and tax-saving fixed deposits qualify for deduction up to ₹1.5 lakh. Failure to invest before the deadline will result in loss of this deduction.

Similarly, health insurance premium payments under Section 80D must be made within the financial year to claim deduction. Taxpayers can claim up to ₹25,000 for self and family, ₹50,000 for senior citizens, and higher limits in certain cases if parents are insured.

An additional deduction of ₹50,000 under Section 80CCD(1B) is available for voluntary contribution to the National Pension System (NPS), which must also be made before March 31 to be eligible.

Check home loan, HRA and donation claims

Taxpayers claiming home loan interest deduction under Section 24 should ensure that the interest is actually paid during the financial year. If the payment is made after March 31, the deduction of up to ₹2 lakh may not be allowed for FY26.

Employees claiming House Rent Allowance (HRA) should maintain valid rent receipts, rent agreements, and landlord details wherever required. Missing documents may lead to reduced exemption and higher taxable income.

Donations made to approved charitable institutions under Section 80G must also be completed before the financial year ends to claim the deduction in the current year.

Education loan, capital gains planning and tax-loss harvesting

Interest paid on an education loan under Section 80E qualifies for full deduction, but only if the payment is made within the financial year.

Taxpayers who have earned capital gains during the year should consider investing in specified instruments under Sections 54, 54EC or 54F to claim exemption. They may also review their investments for tax-loss harvesting, where eligible capital losses can be booked and set off against gains to reduce overall tax liability.

Advance tax, TDS compliance and proof submission

Taxpayers whose total tax liability exceeds ₹10,000 should ensure that advance tax has been paid, especially in case of business income, professional income, or capital gains. Failure to pay advance tax may attract interest under Sections 234B and 234C.

Employees should also submit investment proofs and declarations to their employers within the prescribed timelines. If proofs are not submitted, employers may deduct higher TDS.

Businesses and professionals must ensure proper TDS/TCS deduction, collection, and deposit, as delays may lead to interest, penalties, and disallowances while computing taxable income.

Experts advise taxpayers not to wait until the last moment, as missing the March 31, 2026 deadline could lead to loss of deductions, higher tax liability, or additional compliance burden in the next financial year.