As the financial year in India approaches its close on 31 March, taxpayers and salaried employees are urged to complete several key financial tasks to maximise tax savings and avoid compliance issues. Financial experts say reviewing documents, confirming deductions and checking insurance coverage before the deadline can help individuals avoid higher tax deductions and financial surprises.
Submit investment proofs to employers
Many companies require employees to submit proof of tax-saving investments before the end of the financial year so that the correct amount of Tax Deducted at Source (TDS) can be calculated. Documents commonly required include life-insurance premium receipts, ELSS mutual fund statements, Public Provident Fund (PPF) deposits, home-loan interest certificates and rent receipts for claiming House Rent Allowance (HRA).
If these proofs are not submitted, employers may deduct higher TDS from the March salary, although the deductions can still be claimed while filing the income tax return later.
Complete tax-saving investments
Taxpayers opting for the old tax regime can claim deductions of up to Rs 1.5 lakh under Section 80C of the Income Tax Act through investments such as Employee Provident Fund (EPF), PPF, tax-saving fixed deposits, ELSS mutual funds and life-insurance premiums.
These investments must be made before 31 March to qualify for deductions in the current financial year.
Review insurance coverage
Experts also recommend reviewing life and health insurance policies before the financial year ends. Health-insurance premiums can qualify for deductions under Section 80D, while policyholders should ensure coverage remains adequate for their current financial responsibilities.
Ensure minimum deposits in savings schemes
Certain government-backed schemes such as PPF, the Sukanya Samriddhi Yojana and the National Pension System require minimum annual contributions to keep accounts active and maintain tax benefits before the financial year closes.
Pay pending advance tax
Individuals whose tax liability exceeds Rs 10,000 in a financial year must pay advance tax in instalments, with the final instalment due by 15 March to avoid interest penalties.
Common mistakes to avoid
Financial planners warn that many taxpayers make avoidable mistakes in the last weeks of the financial year. These include submitting incomplete documentation, making rushed investments without evaluating risk, or failing to report income from interest or investments. Missing such details can lead to inaccurate tax calculations or lost deductions.
Experts advise preparing documents early and reviewing finances systematically to ensure a smoother transition into the new financial year.
