With the 2025-26 financial year set to close on March 31, taxpayers have only a narrow window left to take stock of their finances. It is a crucial moment to reassess tax positions and investment choices.
Timely action can not only reduce tax liability but also ensure compliance with regulations. The deadline looms for contributions to PPF, SSY and NPS, updated ITR filings and PAN-related formalities.
1. Investing In Tax-Saving Options
To claim deductions under Section 80C of the Income Tax Act, 1961, taxpayers following the old regime need to complete investments in instruments such as PPF, SSA, and NPS before March 31. Deposits made after the deadline will be carried forward to the next financial year for tax purposes.
2. Deadline For PAN Card Rules
From April 1, applicants will no longer be able to obtain a PAN using Aadhaar alone. Those looking to complete the process with minimal paperwork should do so before the March 31 deadline.
Thereafter, supporting documents such as a birth certificate, voter ID, passport, driving licence, or matriculation certificate will be required, along with affidavits or other official records where necessary.
3. Verifying Numbers In AIS, Form 26AS
The Annual Information Statement (AIS) and Form 26AS play a crucial role in ensuring accurate income tax filings. Taxpayers are advised to cross-check the figures in both documents by March 31 to prevent discrepancies.
4. Proof Of Tax-Saving Investments
With the financial year drawing to a close, salaried individuals are required to submit evidence of their investments to their employers by March 31, 2026. Key documents include rental agreements and rent receipts for HRA claims, insurance premium receipts, ELSS investment proofs, and PPF account records.
5. Claim Your Home Loan Benefits Before Filing
Those repaying a home loan can reduce their taxable income by claiming principal repayments under Section 80C and interest payments under Section 24(b). For rented properties, the total repayment is deductible under both the old and new tax structures. To claim these benefits for FY 2025-26, borrowers must obtain their Home Loan Interest Certificates from the lender.
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6. Health Insurance Deductions
Section 80D of the Income Tax Act allows deductions on health insurance payments. For personal policies, taxpayers can claim up to Rs 25,000, but only if the premiums are paid before the financial year ends on March 31.
7. ITR(U)
Individuals who missed claiming tax deductions in their previous year's ITR have the option to correct the error through an updated return (ITR-U). The revised filing must be submitted by March 31, 2026.
8. Foreign Income Declaration
Those receiving overseas income must submit a statement outlining the earnings and corresponding taxes paid for the current financial year. The deadline for this submission is March 31, 2026.
9. Year-End Capital Gains Assessment
Investors should evaluate their capital gains before March 31 to confirm correct tax liability and make necessary advance tax payments. It will help prevent any last-minute compliance issues.
10. Small Savings Schemes: Don't Miss Your Minimum Deposit
Contributors to government-backed schemes like PPF, Sukanya Samriddhi, MIS, and SCSS must confirm that the minimum deposit has been made. This step is crucial for ensuring the accounts remain eligible for tax benefits in the current financial year.
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