Financial Year End: Complete these 6 tasks today, otherwise you may have to pay heavy taxes
Before the end of the financial year, complete important tasks like advance tax, tax-saving investments, job information, PPF/Sukanya deposits, and MSME payments today. Otherwise, you could face significant losses in taxes, interest, and penalties later.
The financial year 2025-26 ends today, March 31, 2026. Therefore, there are some important things and deadlines related to your financial health that you need to know.
If you don't complete your pending tasks today, you could face losses in the form of taxes, interest, or penalties later. Therefore, it's wise to complete these tasks today.
1. Calculate advance tax
If your total tax liability exceeds ₹10,000, you are required to pay advance tax during the year. Many people overlook this, but doing so can be costly. If you don't pay advance tax on time, you may have to pay interest.
Additionally, if a significant portion of the total tax is not deposited by March 31st, additional interest may be charged. Therefore, calculate your tax immediately and pay any outstanding dues as soon as possible.
2. Last chance to save tax
If you're under the old tax system, you still have the opportunity to save tax. You can reduce your tax liability by investing in certain schemes. Investing in schemes like PPF, ELSS, life insurance, NSC, and tax-saving FDs can offer significant benefits.
Additionally, investing in NPS also offers additional benefits. Purchasing health insurance or paying its premiums also offers tax benefits. So, take advantage of these options without delay.
3. If you change jobs, don't forget this task.
If you've changed jobs this year, there's one important task that's often forgotten. You should provide your new office with your previous salary information.
Failure to do so will result in incorrect tax calculations and could result in additional tax payments when filing your Income Tax Return (ITR). Therefore, be sure to share this information promptly.
4. Keep PPF and Sukanya accounts active
Many people open PPF or Sukanya Samriddhi Yojana accounts but forget to make the minimum annual deposit. Doing so could result in your account becoming inactive.
Additional fees may apply to reactivate it. Therefore, ensure you deposit the minimum required amount before the end of the year.
5. Do not delay MSME payments
If you're in business and procure goods or services from small or medium-sized businesses, it's crucial to pay them on time.
Failure to pay within the stipulated timeframe will result in you losing the tax benefit, potentially increasing your tax liability. Therefore, reconcile all your outstanding payments and clear them on time.
6. Be mindful of capital gains and losses
Be sure to review your investment history today. It's important to know how much profit or loss you've made from stocks or mutual funds.
If you've incurred losses, you can offset them against profits to save tax. Following this process wisely can reduce your total tax liability.