As the new financial year 2026-27 is approaching, it becomes very important for taxpayers to complete some important financial tasks as there is very little time left for the end of the current financial year (2025-26). In this context, by taking some important steps before March 31, 2026, people can save tax and avoid penalties. Let us know about those tasks which should be completed on time to avoid any problem in future…
Submit investment related documents
If an employee has informed his/her employer about various investments at the beginning of the year—in order to save tax—then it is necessary to submit proof of these investments before the end of the financial year. Normally, this work should be completed before March 31. If an employee is unable to submit investment related documents on time, the company may deduct more TDS (Tax Deducted at Source) from his salary, which may cause financial loss to the employee.
Timely payment of advance tax is necessary
Taxpayers whose total tax liability is more than ₹ 10,000 are required to pay advance tax. The last date for this payment has been fixed as March 15, 2026. If a person is not able to deposit his advance tax by this due date, he may have to pay higher interest and penalty later. Therefore, it is considered very important to fulfill this responsibility before the end of the financial year.
Invest in these schemes to save tax
People who choose the ‘Old Tax Regime’ can get tax benefits by investing money in certain savings schemes. Under income tax rules, exemptions are given on such investments, which include schemes like Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), and National Savings Certificate (NSC). By investing in these schemes one can reduce their overall tax liability to a great extent. Additionally, to keep these accounts operational, it is necessary to deposit a certain minimum amount every year. It is advisable to collect all the necessary information about these requirements before the end of the financial year.
Tax relief is also available on health insurance
People paying tax on paying health insurance policy premium are entitled to tax deduction under Section 80D. Under this rule, an individual can claim a deduction of up to ₹25,000 on the premium paid for himself and his family. However, if the insured person is above 60 years of age, this limit is increased to ₹50,000. Additionally, there is an additional deduction available on parents’ health insurance premiums, providing further tax relief.
