Tax Alert: Before March 31, taxpayers must complete these 3 important tasks; Otherwise, you will be fined!
- A few days left for the end of the current financial year
- 31st March is a very important date for tax and financial planning
- You may also suffer a huge financial loss
Tax Alert: Only a few days are left for the end of the current financial year (2025-26). March 31 is a very important date for tax and financial planning. If you don’t complete your required tasks by this date, not only will you have to pay fines, but you may also suffer huge financial losses. Know which 3 tasks you should complete on priority before 31st March 2026
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31 March 2026 – Tax deadline
The date 31st March is very close now. Hence, this date becomes important as a deadline for many tax-related regulations. If you want to avoid any penalty, make sure to complete these tasks by March 31 or if possible, earlier. Let us review these requirements one by one:
Updated Income Tax Return
Section 139(8A) of the Income Tax Act lays down the provisions regarding filing of ‘updated income tax return’ i.e. updated income tax return. Under this rule, taxpayers can disclose any past mistakes or previously undisclosed income. This updated Tax Return provides taxpayers with an additional opportunity to correct their errors.
Taxpayers can file the updated return for ‘Assessment Year 2021-22’ by 31 March 2026. If the taxpayers do not do so and subsequently any discrepancies are found, they may face stiffer penalties and may also face legal difficulties.
Foreign Tax Credit – Form 67
This rule provides relief to taxpayers who have already paid tax on income earned abroad. ‘Foreign tax relief’ helps taxpayers to avoid ‘double taxation’. To avail this benefit, taxpayers need to submit a certificate detailing their foreign income and tax paid on it, along with Form 67. This provision is particularly important for individuals who live and work abroad or who receive income from foreign sources.
Advance Tax
You must ensure that your Advance Tax liability is settled in full by the deadline of 31st March. This requirement is mandatory for persons deriving income from sources like ‘Futures and Options’ (F&O) trading, freelancing, rental property, capital gains or interest income. Such individuals can settle their tax obligations and reduce their total tax liability by paying their tax till 31 March 2026. Please note that in case of delay in payment of tax, under section 234B and 234C, interest is levied on the overdue amount at the rate of 1% per month.
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