Financial Year-End Checklist: Things to Do Before 31 March 2026

The Financial Year 2025-26 ends on March 31, 2026. Missing this date could mean losing valuable deductions, paying interest, penalties, and falling short on compliance requirements. This checklist ensures you make the most of every tax saving opportunity as the deadline approaches. 

Why is 31 March an Important Financial Deadline?

The financial year in India is from 1st April to 31st March, and March 31st is a crucial regulatory and compliance deadline that affects every taxpayer. 

• End of Financial Year: All income earned, investments made, and expenses incurred between 1 April 2025 and 31 March 2026 fall within FY 2025-26. After this date, a new financial year begins.
• Last Date for Claiming Deductions: Tax saving investments under Section 80C, 80D, and other provisions must be completed before 31 March to be eligible for deductions in that financial year.
• Compliance and Reporting: Advance tax instalments, TDS reconciliation, and income reporting must be settled by this date to avoid interest charges and penalties.
• Employer Payroll Adjustments: Salaried employees must submit investment proofs to their employer before the deadline. Failure to do so results in higher TDS deductions from the final salary of the year.

10 Financial Tasks You Should Complete Before 31 March

1. Complete Tax Saving Investments

Taxpayers opting for the old tax regime can claim deductions under Section 80C by making several tax saving investments such as:

• Equity Linked Savings Scheme
• Public Provident Fund
• National Pension Scheme
• Life Insurance Premiums
• Tuition Fees

Taxpayers can also claim a deduction for the health insurance premium paid under Section 80D. These deductions help reduce taxable income significantly. 

Tax-saving investments must be made before 31 March 2026 to count for FY 2025-26. Investments made on or after 1 April 2026 will apply to the next financial year.

2. Submit Investment Proofs to Your Employer

Salaried employees are required to submit proof of investment and expenses to their employees before 31st March 2026. Key documents to submit include:

• Rent receipts and rental agreement for House Rent Allowance claims
• Life and health insurance premium payment receipts
• ELSS investment statements or purchase receipts
• PPF passbook or deposit receipts
• Home loan interest certificate

3. Advance Tax Payment

Taxpayers with tax liability exceeding Rs. 10,000 are required to pay advance tax in four instalments during the financial year. Failure to pay advance tax will attract interest at 1% per month each under Section 234C and 234B, leading to massive tax liability. Paying advance tax before March 31, 2026 helps to minimise interest liability on the tax component. 

4. Check AIS and Form 26AS

The Annual Information Statement (AIS) and Form 26AS are crucial compliance requirement documents required while filing ITR. These documents provide a consolidated view of your financial transactions as reported to the Income Tax Department.

Taxpayers need to verify the amounts mentioned in these documents as discrepancies can lead to mismatch and Income Tax notices from the department. 

5. Use Tax Loss Harvesting

Losses incurred in the financial year can be used to reduce income, which in turn reduces the taxable income. 

• Short-term capital losses can be set off against both short-term and long-term capital gains.
• Long-term capital losses can only be set off against long-term capital gains.
• Any unabsorbed losses can be carried forward for up to eight assessment years.

However, to set off and carry forward such losses, it is important to book these losses before the financial year ends i.e., 31st march 2026. 

6. Contribute the Minimum Amount to PPF, NPS, or SSY

Certain government savings schemes also reduce taxable income as they are allowed as deductions under Section 80C. These schemes include investing in PPF account, NPS account, and Sukanya Samriddhi Yojana (SSY). Investing in these schemes before March 31st can enable tax deductions of up to Rs. 1.5 lakh.

7. Review Your Home Loan Interest Certificate

Taxpayers having an active home loan can claim deductions on both the principal under Section 80C and interest repayment under Section 24(b). Under the Old tax regime, interest up to Rs. 2 lakh can be claimed as deduction for self-occupied property. 

However, the entire interest repayment can be claimed as deduction under both tax regimes if it is for a let-out property. Taxpayers should make sure to have Home Loan Interest Certificates from the lender for FY 2025-26. 

8. Check Capital Gains From Investments

Reviewing capital gains before 31st March 2026, helps tax payers to compute the tax liability on such gains and pay adequate advance tax. Taxpayers can also benefit from tax loss harvesting to minimise gains and save taxes. 

9. Review Old vs New Tax Regime

Choosing the right tax regime helps save tax as the old tax regime allows to claim vast deductions but a stringent tax slab rate. The new tax regime offers a relaxed tax slab rate but disallows most of these deductions. Hence, which tax regime is better, depends on the taxpayer's income and the deductions available to such taxpayers. 

10. Update Personal and Financial Information

• PAN-Aadhaar Linkage: While the deadline for mandatory linkage has passed, verify that your PAN and Aadhaar are successfully linked to avoid higher TDS deduction and other restrictions.
• Bank Account Details: Ensure your bank account registered with the Income Tax Department is active and correct, as tax refunds are directly credited to this account.
• Nominee Details: Review and update nominee information for all your financial accounts including bank accounts, mutual funds, insurance policies, and PPF.
• Contact Information: Ensure your mobile number and email address registered on the Income Tax e-filing portal are current, as all communications and OTPs are sent to these.

Quick Financial Year-End Checklist