Make Your Tax-Saving Moves Before 31 March: A Quick Checklist

As the financial year in India ends on 31 March, taxpayers often rush to complete last-minute financial tasks that can help reduce their tax burden. Financial planners say individuals who have opted for the old income-tax regime must ensure all eligible investments and payments are completed before the deadline to claim deductions in the current financial year. 

Review your Section 80C limit

One of the first steps is checking how much of the Rs 1.5 lakh deduction limit under Section 80C has already been used through contributions such as Employee Provident Fund (EPF), life-insurance premiums, or children's tuition fees. Any shortfall can be filled through approved instruments before 31 March. 

Invest in tax-saving instruments

Taxpayers can invest in schemes such as Public Provident Fund (PPF), National Savings Certificate (NSC), Sukanya Samriddhi Yojana (SSY), Senior Citizen Savings Scheme (SCSS), and tax-saving fixed deposits to claim deductions under Section 80C. 

Equity-Linked Savings Schemes (ELSS) offered by mutual funds are also popular because they come with the shortest lock-in period of three years among 80C options and can be invested in online quickly, making them suitable even for last-minute tax planning. 

Consider additional NPS deductions

Contributions to the National Pension System (NPS) can provide an extra deduction of up to Rs 50,000 under Section 80CCD(1B), over and above the Rs 1.5 lakh limit available under Section 80C. 

Pay insurance premiums and other eligible expenses

Health-insurance premiums paid before the financial year-end can qualify for tax deductions under Section 80D. Missing the payment before 31 March could mean losing both tax benefits and insurance coverage for that period. 

Maintain minimum deposits in savings schemes

Investors must also ensure the minimum annual deposit requirements are met in schemes such as PPF, SSY and NPS before 31 March to keep accounts active and retain associated tax benefits. 

Financial experts advise completing these tasks well before the deadline to avoid last-minute technical glitches on investment portals that could push transactions into the next financial year and invalidate deductions.