March 31 Deadline Near: Complete These Financial Tasks Before New Rules Take Effect from April 1

Changes in tax and investment rules from April 1 may impact bank accounts, savings, and tax benefits

Pune, March 29: With just two days left before the end of the financial year on March 31, 2026, taxpayers and investors are urged to complete crucial financial tasks to avoid penalties, loss of benefits, or inactive accounts. From April 1, several changes in financial and tax-related rules will come into effect, directly impacting bank accounts, investments, and tax exemptions.

Experts advise individuals not to delay essential financial activities, as missing the March 31 deadline could result in missed tax-saving opportunities and disruptions in financial accounts.

Key Financial Changes from April 1

With the beginning of the new financial year, updates are expected in Provident Fund (PF), Sukanya Samriddhi Yojana, National Pension System (NPS), and income tax regulations. Completing required transactions before March 31 can help keep accounts active, ensure tax savings, and avoid penalties.

Keep PF and Sukanya Accounts Active

To maintain an active Provident Fund (PF) account, a minimum contribution of ₹500 is required annually. Similarly, for Sukanya Samriddhi Yojana accounts, a minimum deposit of ₹250 must be made before March 31. Failure to do so may result in account deactivation.

Invest in NPS for Additional Tax Benefits

Under the National Pension System (NPS), a minimum contribution of ₹1,000 is required to keep the Tier-1 account active. Investors can also claim an additional tax deduction of up to ₹50,000 under Section 80CCD(1B) by investing before the financial year ends.

Complete PAN-Aadhaar Linking and KYC

Linking PAN with Aadhaar has become mandatory for various financial and tax-related transactions. In addition, pending KYC processes and revised Income Tax Returns (ITR) for the previous year must be completed before March 31 to avoid disruptions.

Last Chance for Tax Savings Under Section 80C

Taxpayers opting for the old tax regime can claim deductions of up to ₹1.5 lakh under Section 80C. Investments can be made in LIC policies, ELSS mutual funds, 5-year fixed deposits, or payment of children’s school fees. This benefit will not be available for the current financial year after March 31.

Avail Home Loan Tax Benefits

Individuals with home loans can claim tax deductions on principal repayment under Section 80C if payments are made before March 31. Additionally, separate deductions on interest payments are also available, making timely EMI payments beneficial.

Disclaimer:
This article is for informational purposes only. Readers are advised to consult financial advisors or tax professionals for personalized guidance based on their individual financial situation.