Year-end Tax Planning Checklist for Indian Businesses and Individuals

Most tax planning only works before the financial year ends. After 31 March, the options narrow sharply. This checklist covers what businesses and individuals should review in the last quarter of the year.

Note: this article covers the rules for FY 2025-26 under the Income-tax Act, 1961. The Income-tax Act, 2025 applies from tax year 2026-27, with renumbered provisions and some changes, so check the current position for later years.

For Businesses

1. Estimate profit for the year and check the final advance tax instalment, due by 15 March.
2. Deduct and deposit TDS on all payments, including year-end provisions for expenses.
3. Pay statutory dues — PF, ESI, Professional Tax, GST — before the return due date so they're deductible.
4. Pay MSME suppliers within the time allowed under the MSMED Act, so the expense isn't disallowed.
5. Time asset purchases — assets put to use for less than 180 days in the year get half depreciation.
6. Write off genuinely irrecoverable debts in the books.
7. Review the company's regime choice, if still open.
8. Reconcile GST credit before time limits run out.

For Individuals

1. Compare the new and old regimes for your expected income.
2. If staying in the old regime, complete 80C, 80D and other investments by 31 March.
3. Review capital gains for the year, and consider whether to realise losses to set off against gains.
4. Use the ₹1.25 lakh annual exemption on long-term gains from listed equity if appropriate.
5. Pay the final advance tax instalment on non-salary income.
6. Collect documents for rent, home loan interest and donations.

For Everyone

• Check your AIS for income you may have forgotten.
• Plan any large sale — like property — with its tax consequences in mind.
• Keep records of everything you'll claim.

Don't Chase Deductions for Their Own Sake

Spending money only to save tax rarely makes sense. Investments and expenses should make sense on their own, with the tax saving as a bonus.

Getting Help

Think Filing runs a year-end tax review for businesses and individuals each February and March.