Mumbai: With the financial year ending on March 31, taxpayers have very little time left to complete important tax-saving tasks. However, not all actions have the same deadline. For stock market investors, March 30 is the final day because markets remain closed on March 31. Other tax-related activities can still be completed by March 31.
Last Chance For Equity Investors
Investors using stocks or equity mutual funds for tax planning must act before market closing on March 30. One key strategy is tax-loss harvesting. This means selling loss-making investments to offset profits earned during the year.
By doing this, investors can reduce their taxable capital gains. Missing this deadline means losing the chance to adjust gains for FY 2025–26.
Deductions Still Open Till March 31
Many tax-saving options are still available until March 31. Taxpayers can invest under Section 80C through ELSS, PPF, or life insurance. They can also claim an additional Rs 50,000 deduction under the National Pension System (NPS).
Health insurance premiums under Section 80D and donations under Section 80G can also be paid before the deadline. Payments must be made through proper banking methods to qualify.
Advance Tax And Capital Gains Actions
Taxpayers who have not fully paid their advance tax can still do so by March 31. Although some interest may apply, it helps reduce further penalties.
Those with capital gains from property or other assets can deposit the amount in the Capital Gains Account Scheme to keep tax benefits intact if reinvestment is pending.
Important Steps For Businesses
For businesses, March 31 is the last date to record expenses for the year. Properly recorded expenses can reduce taxable income.
Businesses must also ensure that assets are used before March 31 to claim depreciation benefits. If assets are not in use, depreciation cannot be claimed.
Employee And TDS Compliance
Employees must submit proof of their tax-saving investments to employers before payroll deadlines. If proofs are not submitted, higher TDS may be deducted from salary. Though excess tax can be claimed later, it affects immediate cash flow.
GST And Other Compliance Tasks
Businesses should reconcile GST returns with their financial records and fix mismatches. They must also review input tax credit claims and reverse any incorrect entries.
Exporters need to file a fresh Letter of Undertaking (LUT) before April 1 to continue exports without IGST. Companies with turnover above Rs 5 crore must also prepare for mandatory e-invoicing from April 1.
Disclaimer: This article is for general informational purposes only and not tax advice. Readers should consult a qualified tax professional before making financial decisions, as rules and individual situations may vary.
