Key tasks taxpayers should complete before the March 31 deadline

march 31 deadline

• Make tax-saving investments by March 31 for FY 2024–25.
• Submit investment proofs to employers to avoid higher TDS
• Review documents and finances to avoid errors and missed deductions.

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As the financial year approaches its end on March 31, taxpayers and salaried individuals are advised to complete several important financial tasks to maximise tax savings and avoid compliance-related issues.

Financial experts note that reviewing documents, confirming deductions and checking insurance coverage before the deadline can help individuals prevent higher tax deductions and unexpected financial complications.

Advance tax deadline

One of the key dates to watch is March 15, which is the last day to pay the final instalment of advance tax for FY 2025–26. Taxpayers whose estimated tax liability exceeds Rs 10,000 must ensure timely payment to avoid interest charges on the outstanding amount.

Senior citizens aged 60 years or above are exempt from paying advance tax if they do not have income from business or profession during the financial year. However, senior citizens who earn income from a business or profession are required to pay advance tax.

Investing for tax deduction:

Investors must make tax-saving investments before March 31 to claim deductions for the financial year 2024–25. Investments made after this date will only be eligible for tax deductions in the next financial year, 2025–26.

Taxpayers opting for the old tax regime can invest in instruments such as the Provident Fund (PPF), Sukanya Samriddhi Account (SSA), and the National Pension System (NPS) to claim tax benefits under Section 80C of the Income Tax Act, 1961.

It is important to note that deductions under sections such as 80C, 80D and 80G are available only under the old tax regime and not under the new tax regime. Therefore, taxpayers opting for the new tax regime for FY 2024–25 are not required to make investments solely for tax-saving purposes.

Submit investment proofs to your employer

Employees who declared tax-saving investments earlier in the financial year must submit the supporting documents to their employer before the payroll cut-off date.

If the proofs are not submitted in time, the employer may deduct a higher amount of tax at source (TDS) from the salary during the remaining months of the financial year.

Home loan interest

Individuals with a home loan should download the annual statement or interest certificate from their bank. Under Section 24(b), taxpayers can claim a deduction of up to Rs 2 lakh on home loan interest. Deductions on principal repayment are available under Section 80C.

Claim deduction for health insurance under Section 80D

Under Section 80D of the Income Tax Act, 1961, taxpayers can claim deductions for premiums paid towards health insurance policies. A deduction of up to Rs 25,000 can be claimed for premiums paid for self and family (Rs 50,000 if the insured person is aged 60 years or above). For parents, a deduction of up to Rs 75,000 can be claimed (Rs 50,000 if the insured parent is aged 60 years or above).

Option of tax gain harvesting

Investors holding equity shares or equity mutual funds for more than one year can consider tax gain harvesting. Under Section 112A, long-term capital gains of up to Rs 1.25 lakh from listed shares and equity mutual funds are exempt from tax.

Taxpayers should periodically review their tax position to optimise their capital gains outgo. “If no long-term capital gains are realised during the year, the annual exemption limit of Rs 1,25,000 may go unutilised. Therefore, a taxpayer may consider rebalancing the portfolio by realising long-term capital gains up to Rs 1,25,000 without attracting any tax liability,” said Gopal Bohra, Partner -Tax, NA Shah Associates.

Uploading the statement of foreign income

The deadline to upload the statement of foreign income offered to tax, along with tax deducted or paid on such income for the previous year 2022–23, is March 31. This is required to claim foreign tax credit if the return of income has been filed within the time limits specified under Section 139(1) or Section 139(4).

ITR-U for AY 2021–22 (FY 2020–21)

Taxpayers who earlier missed reporting certain deductions can still revise their returns by using the updated return facility through ITR-U (Updated Income Tax Return).

Common mistakes to avoid

Financial planners caution that many taxpayers make avoidable errors in the final weeks of the financial year. These include submitting incomplete documents, making rushed investments without assessing risks, or failing to report income from interest or investments. Missing such details can lead to inaccurate tax calculations or the loss of deductions.

Experts recommend preparing documents in advance and reviewing finances carefully to ensure a smoother transition into the new financial year.

“Taxpayers who claim deductions such as housing loan interest, HRA, or other tax-saving investments may find the old regime beneficial. On the other hand, individuals with fewer deductions may benefit from the lower tax rates available under the new regime. A comparative calculation based on the individual’s income profile is advisable before making the choice,” said Kinjal Bhuta, Treasurer, Bombay Chartered Accountants’ Society.