March 31 Deadline: Complete These Tax & Property Tasks To Avoid Penalty And Extra TDS

With the financial year 2025–26 ending soon, taxpayers must complete key financial tasks and keep important documents ready to avoid penalties and higher tax deductions.

As March 31 approaches, marking the end of the financial year 2025–26, taxpayers and salaried individuals are advised to review their tax planning and complete pending financial tasks. Missing deadlines or failing to submit required documents can lead to higher tax deductions or even notices from the Income Tax Department.

Submit Investment Proofs To Avoid Higher TDS

Employees who declared tax-saving investments at the beginning of the year must submit proof to their employer before March 31.

If proofs are not submitted on time, companies may deduct higher TDS from the March salary, increasing the immediate tax burden.

Choose The Right Tax Regime

Taxpayers can opt between the old and new tax regimes.

While the new regime is the default, the old regime may be more beneficial for those claiming deductions like home loan, insurance or investments. The correct choice should be finalised before the financial year ends.

Invest Under Section 80C For Tax Savings

Those opting for the old tax regime can still make last-minute investments under Section 80C to reduce taxable income.

Popular options include:
– PPF, ELSS, NSC
– Life insurance (LIC)
– Sukanya Samriddhi Yojana

These investments help claim deductions and lower tax liability.

Claim Health Insurance Benefits Under Section 80D

Taxpayers can claim deductions on health insurance premiums:

– Up to ₹25,000 for self and family
– Up to ₹50,000 for senior citizens
– Up to ₹75,000 including parents

This is an important way to reduce overall tax burden.

Keep These Important Documents Ready

To claim deductions smoothly, keep the following documents prepared:

– Rent receipts and landlord’s PAN (for HRA claims)
– Investment proofs (PPF, LIC, mutual funds, tuition fees)
– Home loan interest certificate from bank
– Health insurance premium receipts

Proper documentation helps avoid last-minute issues and ensures correct tax calculation.

Pay Advance Tax On Time

If total tax liability exceeds ₹10,000, advance tax must be paid.

Missing the deadline can result in interest and penalties, increasing overall financial burden.

Check AIS And Form 26AS Carefully

The Income Tax Department tracks financial transactions through AIS and Form 26AS.

Any mismatch between declared income and actual transactions may lead to notices. It is important to verify details before final submission.

Correct Errors Using ITR-U

If mistakes were made while filing returns earlier, taxpayers can update them using ITR-U. This helps correct errors and avoid future complications.

Why Acting Before March 31 Matters

Completing these tasks before the deadline ensures:

– Lower tax liability
– No penalties or interest
– Smooth salary processing without excess TDS
– Better financial planning for the next year

Taking timely action can help taxpayers avoid unnecessary stress and financial loss at the end of the financial year.