As the financial year draws to a close on March 31, 2026, taxpayers should look to complete key financial and compliance-related tasks. A timely review not only ensures adherence to the provisions of the Income Tax Act, 1961, but also helps minimise interest, penalties and missed deductions. Here’s a practical guide to what should be prioritised before the books are closed.
Advance tax
Taxpayers with a liability of ₹10,000 or more must pay advance tax in four instalments throughout the year. Although the final deadline was March 15, advance tax can still be paid by March 31 to avoid incurring interest liability for an extended duration
Expenses/deductions
Those following the cash system of accounting must ensure expenses are actually paid before year-end so that these can be claimed in their profit and loss account.
Donations under Section 80G should be made via banking channels and realised before March 31 to remain eligible.
Loan repayments
Repaying loans, deposits or cash credit balances before the year-end can help avoid potential scrutiny, including additions under section 68 relating to unexplained credits.
Updated returns
Tax payers who missed filing their return for Assessment Year 2025–26 by December 31, 2025, still have an opportunity to comply. The law permits filing an updated return under section 139(8A) within 48 months from the end of the relevant assessment year.
This route is also useful for correcting errors in previously filed returns under Sections 139(1), 139(4), or 139(5). However, tax payers should note that filing an updated return entails payment of additional tax and interest.
Form 12B compliance
Salaried individuals who changed jobs during FY26 must submit Form 12B to their new employer. This ensures accurate disclosure of prior income and proper TDS deduction.