Your quick guide to maximising tax deductions this financial year

Tax planning often shifts from “I’ll do it later” to “I need to act now.” While early planning is always ideal, there’s still time to make meaningful moves that can reduce your tax outgo, provided you know where to look and act quickly.

Here are some practical strategies to help you maximise deductions before the financial year closes.

1. Review your eligible deductions

Start by checking how much of your eligible deductions you’ve already used. Sections like 80C, 80D, and 80CCD offer opportunities to reduce taxable income through investments and expenses such as life insurance premiums, health insurance, provident fund contributions, and pension schemes.

If you still have unused limits, consider making top-up investments or payments before March 31. Even a last-minute contribution can make a difference to your final tax liability.

2. Submit pending expense proofs

Many salaried employees lose out on deductions simply because expense proofs were not submitted on time. Check if you have submitted documents for:

House Rent Allowance (HRA)
Health insurance premiums
Tuition fees
Home loan interest certificates

Ensure all valid proofs are shared with your employer or uploaded on the relevant portal before the deadline. Missing documentation could mean higher tax deductions from your salary.

3. Plan and pay advance tax, if applicable

If you are self-employed, a freelancer, or earn income outside your salary, advance tax is crucial. Any shortfall or delay in payment can attract interest and penalties.

Estimate your total income, calculate tax payable after deductions, and pay any pending advance tax before March 31. This step not only avoids penalties but also keeps your finances compliant and stress-free.

4. Check capital gains and losses

If you have sold assets like shares or property during the year, review your capital gains. You may still have time to offset gains with losses or invest in eligible options to reduce tax impact. This is especially useful for those with investment income.

Tax planning at the last minute isn’t about rushing, it’s about being focused. A quick review of deductions, timely submission of proofs, and settling advance tax can significantly reduce your tax burden and help you close the financial year on a confident note.

Pro Tip:

Don’t treat March 31 as a one-day event. Set a simple annual reminder every January to review your tax position early, it gives you more choices, less pressure and better control over your money.

17 December 2025

Share this Blog