As the financial year 2025–26 draws to a close, 31st March 2026 emerges as one of the most important dates in the compliance calendar for taxpayers, businesses, and professionals across India. This date is not just symbolic of the end of the fiscal year; it is the final checkpoint for multiple statutory obligations. From filing updated income tax returns to renewing GST undertakings, depositing TDS, and completing corporate filings, the deadline is packed with responsibilities.
Failing to meet these obligations can result in penalties, interest, disallowance of deductions, or even regulatory scrutiny. On the other hand, timely compliance ensures smooth closure of accounts, maximizes tax benefits, and sets the stage for a clean start to FY 2026–27.
Let’s explore the major categories of compliances due by 31st March 2026.
💰 Income Tax Compliances
Income tax obligations are among the most critical tasks to be completed before the year-end. For individuals and businesses alike, 31st March is the last opportunity to settle pending matters.
1. Filing Updated Returns (ITR-U)
Taxpayers who missed filing or made errors in their returns for FY 2020-21 have until 31st March 2026 to submit an Updated Return (ITR-U). This facility allows correction of omissions or misreporting, but comes with additional tax liability. Missing this deadline means losing the chance to do past filings. Following is the additional tax liability to be paid for filing ITR U of further years after 31st March 2026.
| FY | Additional Tax Liability if filed before 31st March, 2026 | Additional Tax Liability if filed after 31st March, 2026 |
| FY 2020-21 | 70% of additional tax (tax + interest ) | Can not be filed |
| FY 2021-22 | 60% of additional tax (tax + interest ) | 70% of additional tax (tax + interest ) |
| FY 2022-23 | 50% of additional tax (tax + interest ) | 60% of additional tax (tax + interest ) |
| FY 2023-24 | 25% of additional tax (tax + interest ) | 50% of additional tax (tax + interest ) |
| FY 2024-25 | 25% of additional tax (tax + interest ) | 25% of additional tax (tax + interest ) |
2. Tax-Saving Investments
To claim deductions in old regime u/s 80C, 80CCD, and 80D, investments must be made before 31st March. Eligible options include:
- PPF (Public Provident Fund)
- SSY (Sukanya Samriddhi Yojana)
- NPS (National Pension Scheme)
- ELSS (Equity Linked Savings Scheme)
- Life insurance premiums, tuition fees
- Mediclaim
3. Foreign Tax Credit (Form 67)
Taxpayers with overseas income must file Form 67 for AY 2025-27 before 31st March 2026 to claim relief under Double Taxation Avoidance Agreements (DTAA). Without this, foreign tax credits cannot be availed, leading to double taxation.
4. Advance Tax Payments
The final instalment of advance tax must be paid by 31st March. Non-payment or short payment results in interest under Sections 234B and 234C
🏢 GST Compliances
For businesses registered under GST, the year-end brings several obligations that must be completed before 31st March.
1. Renewal of LUT (Letter of Undertaking)
Exporters making zero-rated supplies must renew their LUT (Form RFD-11) for FY 2026-27 before 31st March, 2026. Without renewal, they may be required to pay IGST upfront on exports.
2. Opting for Composition Scheme (CMP-02)
Small businesses eligible for the composition scheme must file CMP-02 by 31st March to opt in for FY 2026–27. This scheme simplifies compliance but restricts input tax credit.
3. Invoice Series Reset
Businesses must start a new invoice numbering series from 1st April 2026. Resetting ensures clarity and compliance with GST rules.
4. ITC Reversals and Reconciliations
Year-end reconciliation of Input Tax Credit (ITC) is crucial. Businesses must reverse ineligible credits and ensure books match with GSTR-2B. Failure to reconcile can lead to notices and penalties.
📑 TDS/TCS Compliances
Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) obligations are time-sensitive and must be completed before the fiscal year closes.
1. TDS Corrections
The last date of filing TDS correction statements from FY 2018-19 Q4 till FY 2023-24 Q3 is 31st March, 2026. If you miss this date, there is no possibility for correcting any mistakes and whole demand becomes payable.
2. Year-End Reconciliation
It is essential to reconcile TDS/TCS entries with books of accounts. This ensures accuracy and avoids mismatches during assessments.
⚠️ Risks of Missing Deadlines
- Financial Penalties: Late fees, interest, and disallowance of deductions.
- Lost Tax Benefits: Investments made after 31st March won’t qualify for FY 2025–26 deductions.
- Audit & Scrutiny: Increased risk of notices and compliance burdens in FY 2026–27.
✅ Conclusion
31st March 2026 is not just another date; it’s the compliance finish line. From income tax filings to GST renewals, TDS deposits, and corporate obligations, this deadline ensures a clean closure of FY 2025–26.
By acting now, individuals secure tax benefits, businesses avoid penalties, and professionals enter FY 2026–27 with confidence and clarity. Treat this date as your final checkpoint; because compliance today means peace of mind tomorrow.
BLOG BY : Mittal & Co.