March 31, 2026 Tax Deadline Near: Last-Minute Ways to Save Tax for FY26

The financial year 2025–26 is about to end, but you still have time to reduce your tax liability. If you follow the old tax regime, you can still use several deductions before March 31.

Add ₹50,000 to NPS for Extra Deduction

You can increase your tax deduction by investing in the National Pension System (NPS).

• Invest up to ₹50,000 under Section 80CCD(1B).
• This is over and above the ₹1.5 lakh limit under Section 80C.
• Total deduction can go up to ₹2 lakh.

This is one of the easiest last-minute tax-saving options.

Claim Health Check-up and Insurance Benefits

Many taxpayers forget smaller but useful deductions under Section 80D.

Preventive Health Check-up

• Claim up to ₹5,000 for preventive health check-ups.
• You don’t need to submit bills.

Insurance for Parents

You can claim extra deductions if you pay for parents’ health insurance:

• ₹25,000 if parents are below 60
• ₹50,000 if parents are senior citizens

This is in addition to the deduction for your own family policy.

Use Super Top-up Health Insurance

A super top-up health insurance policy gives high coverage at low cost.

• Works with a base policy of ₹5–10 lakh
• Coverage can go above ₹50 lakh
• Premiums also qualify for Section 80D deduction

This gives both tax savings and better health protection.

Deduction on Savings Account Interest

You can claim deductions on savings account interest.

• Up to ₹10,000 deduction under Section 80TTA for individuals and HUFs
• Not applicable to fixed or recurring deposits

For Senior Citizens

• Deduction up to ₹50,000 under Section 80TTB
• This limit will increase to ₹1 lakh from next financial year.

Note: Senior citizens cannot claim both 80TTA and 80TTB together.

Try Tax-Loss Harvesting

If you have loss-making stocks or equity investments:

• Sell them before March 31 to book losses.
• Losses can be used to offset capital gains.
• Long-term capital gains exemption is ₹1.25 lakh.

This strategy helps reduce tax and reset your investment cost.

Claim Deductions for Donations

Donations to approved charities qualify for tax benefits under Section 80G.

• Deduction of 50% or 100% depending on the charity.
• Total deduction cannot exceed 10% of gross income.

Read more: ₹10K SIP For 10 Years: Can Bandhan Infra Fund Deliver ₹27.5 Lakh?

Avoid last-minute mistakes

• Check deductions with employers before the deadline.
• Avoid investing only to save tax.
• Choose investments that match long-term goals.

Conclusion

Even in the final days of the financial year, you can still reduce your tax bill. Use smart options like NPS, health insurance, savings interest deductions, donations, and tax-loss harvesting, but invest wisely and not in haste.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.