Tax-Saving Checklist Before 31 March (India, FY 2026-27)

To save tax for FY 2026-27, finish your tax-saving investments and payments by 31 March 2027. First, decide between the new tax regime (the default, with few deductions) and the old regime (more deductions, higher rates). If you choose the old regime, the main items are the ₹1.5 lakh investment limit (PPF, ELSS, EPF and more), an extra ₹50,000 for NPS, and health insurance premiums. The free compound interest calculator shows what each option could grow to. Not tax advice.

What's different this year

FY 2026-27, from 1 April 2026 to 31 March 2027, is the first year under the Income-tax Act, 2025, which replaced the 1961 Act. The new law calls it the "tax year" and renumbers many sections, so familiar names like "Section 80C" now have new numbers. As per Budget 2026 coverage, the deduction limits and the old-regime-only rule for most deductions stayed the same. When you read forms or employer declarations this year, you may see both the old and new section numbers.

Tax rules change. Check the income tax department's website or ask a tax professional before you act.

Step 1: Decide your regime first

Every item on this checklist except a few only helps under the old regime. So start here:

• New regime (default): lower slab rates, a ₹75,000 standard deduction for salaried people, and a rebate that makes taxable income up to about ₹12 lakh tax-free (₹12.75 lakh for salaried people), as per the rates left unchanged in Budget 2026. Most deductions below are not allowed.
• Old regime: higher rates and a ₹50,000 standard deduction, but you can claim the ₹1.5 lakh investment limit, health insurance, home loan interest, HRA and more.

If your deductions add up to a lot, for example a home loan, HRA, full ₹1.5 lakh investments and NPS, the old regime may still win. Otherwise the new regime is usually simpler and cheaper. Run both with your employer's tax calculator or the income tax department's, and decide before investing purely to save tax.

Step 2: Tax-saving investments in the ₹1.5 lakh limit (old regime)

This is the limit people still call "80C". Add up what already counts before buying anything new:

• Your EPF contribution from salary. Often this alone covers a big part of the limit.
• Life insurance premiums you pay.
• Home loan principal repayment.
• Children's tuition fees, for up to two children.

Then fill any gap with one of these:

Option	Lock-in	Return	Notes
PPF	15 years (partial access from year 7)	7.1% as reported for Oct-Dec 2026, reset quarterly	Interest tax-free
ELSS (tax-saving mutual fund)	3 years	Market-linked, not guaranteed	Gains taxed as equity capital gains
Tax-saving bank FD	5 years	Bank's rate	Interest taxable every year
NSC	5 years	Set by government quarterly	Interest taxable
Sukanya Samriddhi Yojana	Matures 21 years after opening	Set by government quarterly	For a daughter under 10

The PPF rate is as reported for October-December 2026 (the Finance Ministry left small-savings rates unchanged that quarter, and we could not open the rate table itself, so confirm it on indiapost.gov.in); the rates for January-March 2027 will be announced near the end of December. For how the long-lock-in options compare, see PPF vs FD and how to calculate PPF maturity.

What it's worth: ₹1.5 lakh of deductions saves up to ₹46,800 in the 30% slab (including 4% cess), ₹31,200 in the 20% slab and ₹7,800 in the 5% slab. The free percentage calculator works it out for your slab.

Step 3: Other common deductions (mostly old regime)

• NPS, your own contribution: an extra ₹50,000 on top of the ₹1.5 lakh limit, old regime only.
• NPS, your employer's contribution: deductible within limits under both regimes, up to 14% of basic pay in the new regime. Ask HR whether you can route part of your salary this way.
• Health insurance premiums: up to ₹25,000 for yourself, spouse and children, and a further ₹25,000 for parents (₹50,000 for each group if the oldest person is a senior citizen), including up to ₹5,000 for preventive health check-ups, under limits that have stood for several years. Old regime only.
• Home loan interest on a self-occupied home: up to ₹2 lakh a year. Old regime only.
• Education loan interest: the full interest, for up to 8 years. Old regime only.
• HRA if you pay rent: collect rent receipts, and your landlord's PAN if rent is over ₹1 lakh a year. Old regime only.
• Donations to eligible charities: keep the receipt with the charity's registration details.
• Savings account interest: a deduction up to ₹10,000 (₹50,000 for senior citizens, including FD interest). Old regime only.

Step 4: January-March to-do list

• January: check your payslip's tax projection and the investment declaration you gave HR in April.
• January-February: submit proofs to your employer by their deadline, or extra TDS will come out of your February and March salary.
• By 31 March: make any remaining PPF, ELSS, NPS or insurance payments. Leave a few days for bank transfers to clear.
• PPF and Sukanya accounts: make at least the minimum yearly deposit, or the account becomes inactive and needs a penalty to revive.
• Advance tax: if you have income outside salary, such as interest or freelance work, the last instalment is due on 15 March.
• Keep everything: receipts, statements and certificates go in one folder for filing. The ITR filing documents checklist lists what you'll need.

Don't invest only to save tax

A last-minute rush often leads to poor choices: an insurance policy you don't need, or a 5-year FD for money you'll need next year. Before you invest:

• Check the lock-in against when you'll need the money.
• Check the after-tax return. Tax-saving FD interest is taxable; PPF interest isn't.
• Spread it out next year. A monthly SIP in ELSS or monthly PPF deposits from April avoids a March scramble. See estimating SIP returns for how monthly investing adds up.

See what your tax-saving investment grows to

Enter the amount, an expected rate and the lock-in period in the free compound interest calculator. For a tax-saving FD, choose Compounded: Quarterly; for PPF, Yearly. It's free and your numbers stay on your device. This checklist is general information, not tax advice; rules change, so confirm the current position with the income tax department or a tax professional.