Save Tax Before March 31: 7 Last-Minute Moves for FY26

Every year it's the same story. Somewhere around the second week of March, my phone starts buzzing with the same panicked question: "Sir, I haven't done any tax saving yet — what should I do quickly?" These are smart, hardworking salaried folks who fully intended to plan their investments in April, then got busy with life, and now have three weeks to protect a meaningful chunk of their income from tax.

Here's a number that should get your attention: a taxpayer in the 30% slab who maxes out the full ₹1.5 lakh under Section 80C, adds ₹50,000 under NPS via 80CCD(1B), and claims ₹25,000 for a health insurance premium under 80D can legitimately reduce taxable income by ₹2.25 lakh — that's roughly ₹70,200 saved in tax (including 4% cess). Miss the March 31 deadline and that opportunity for FY 2025-26 is simply gone. You cannot claim it later.

This article is your practical, no-fluff checklist for tax saving before March 31. I'll walk you through seven concrete moves, show you the actual math with rupee figures, and flag the common traps that cost people money every single year. Let's get to work — the clock is genuinely ticking.

Key Takeaways

• These moves only help if you're on the old tax regime — the new regime doesn't allow most deductions. Check which one benefits you first.
• Section 80C gives you up to ₹1.5 lakh; NPS under 80CCD(1B) adds an extra ₹50,000 on top of that.
• Health insurance (80D) can fetch up to ₹25,000–₹1,00,000 depending on age of the insured.
• An ELSS SIP or lumpsum, PPF top-up, or life insurance premium all count — but the money must leave your account (or the investment must be made) by March 31, 2026.
• NPS is the single most under-used lever — that extra ₹50,000 deduction saves a 30%-slab taxpayer ₹15,600 with just one contribution.
• Don't invest blindly just to save tax. A bad 5-year lock-in is worse than the tax you saved.

First, Which Tax Regime Are You On? (This Changes Everything)

Before you rush to buy anything, answer one question: are you filing under the old regime or the new regime? This is the single most important decision, and getting it wrong wastes both money and effort.

Under the new tax regime (the default from FY 2023-24 onward), you get lower slab rates and a higher standard deduction of ₹75,000, but you forfeit almost every deduction — 80C, 80D, HRA, LTA, home loan interest on self-occupied property, and more. So if you're on the new regime, most of the "last-minute moves" below simply don't apply to you.

Under the old regime, the slab rates are higher, but you can claim the full buffet of deductions. For many people with home loans, high HRA, and a disciplined 80C habit, the old regime still wins.

The only way to know is to run both numbers. Plug your salary and expected deductions into our Income Tax Calculator and compare the final tax under each regime. If the old regime saves you money, then the seven moves below are directly relevant. Also worth reading: Section 87A Rebate 2026: How ₹12 Lakh Income Pays Zero Tax — because if your income is around ₹12 lakh, the new regime rebate might make this whole exercise unnecessary.

Common mistake: People invest ₹1.5 lakh in ELSS and PPF, then discover at filing time that they'd opted for the new regime through their employer — so none of it reduced their tax. Confirm your regime before you invest a single rupee.

Move 1: Max Out Section 80C — The ₹1.5 Lakh Workhorse

Section 80C is the deduction most salaried people already know, but few fully exhaust. The ceiling is ₹1,50,000 per financial year, and it covers a wide range of instruments:

• EPF — your monthly provident fund contribution already counts here.
• PPF — Public Provident Fund, currently earning 7.1% tax-free.
• ELSS mutual funds — the only equity option with a short 3-year lock-in.
• Life insurance premiums — term or traditional policies.
• 5-year tax-saver fixed deposits.
• Principal repayment on your home loan.
• Children's tuition fees (up to two children).
• Sukanya Samriddhi Yojana and NSC.

Do the subtraction before you invest

Here's where people overspend. Add up what you've already contributed this year before writing a fresh cheque. Say your EPF for FY26 totals ₹60,000 and you paid ₹18,000 in children's tuition and ₹22,000 in term insurance premium. That's ₹1,00,000 already used. You only need to invest ₹50,000 more to hit the cap — not ₹1.5 lakh.

For that remaining ₹50,000, an ELSS fund is often the smartest choice: shortest lock-in (3 years vs 15 for PPF or 5 for tax-saver FDs) and equity growth potential. If you prefer safety, a PPF top-up works — see exactly how your balance grows with our PPF Calculator.

Move 2: Grab the Extra ₹50,000 NPS Deduction (80CCD(1B))

This is the move I push hardest, because it's the most ignored. On top of your ₹1.5 lakh 80C limit, you can invest up to ₹50,000 in the National Pension System (NPS) and claim it under Section 80CCD(1B). This deduction exists only under the old regime.

The tax impact is immediate and clean. For a taxpayer in the 30% slab, a ₹50,000 NPS contribution saves ₹15,600 in tax (₹50,000 × 31.2% including cess). In the 20% slab, you save ₹10,400. That's a guaranteed return on your tax outgo before the underlying investment even grows.

Worked example: Priya, ₹18 LPA, 30% slab

Priya has already maxed her ₹1.5 lakh under 80C through EPF and ELSS. In the last week of March she opens an NPS Tier-1 account and deposits ₹50,000 under 80CCD(1B). Here's what happens:

• Taxable income reduces by ₹50,000.
• Tax saved: ₹50,000 × 31.2% = ₹15,600.
• That ₹50,000 now compounds until age 60 in a low-cost pension fund.

If she repeats this ₹50,000 every year for 25 years at a conservative 10% CAGR, her NPS corpus could cross ₹54 lakh — while saving her ₹15,600 in tax annually. Run your own numbers through our NPS Calculator to see your projected corpus and pension.

Pro tip: NPS has a partial lock-in until 60, and at maturity 60% of the corpus is tax-free while 40% must buy an annuity. It's a genuine retirement product, not a liquid investment. Only put in what you're comfortable locking away — but the ₹50,000 deduction is too good to leave on the table if you can spare it.

Move 3: Cover Your Family with Health Insurance (Section 80D)

Medical costs are one of the biggest wealth-destroyers in India, and the government gives you a deduction for protecting against them. Under Section 80D:

• Self, spouse, dependent children: up to ₹25,000 in premium.
• Parents below 60: additional ₹25,000.
• Parents above 60 (senior citizens): additional ₹50,000.
• Preventive health check-up: up to ₹5,000 within the above limits.

So a person under 60, insuring their family and senior-citizen parents, can claim up to ₹75,000 (₹25,000 + ₹50,000). If the taxpayer is also a senior citizen, that ceiling rises to ₹1,00,000.

Take Rahul, 38, in the 30% slab. He pays ₹22,000 for his family floater and ₹40,000 for his 65-year-old father's policy. Total deduction: ₹62,000, saving him roughly ₹19,344 in tax — plus the priceless benefit of actual cover. If you have senior parents, read Senior Citizen Income Tax AY 2026-27 for how their own tax works.

Common mistake: Paying a health insurance premium in cash. To claim 80D, the premium (except the ₹5,000 preventive check-up) must be paid by a non-cash mode — net banking, card, UPI. Cash payments are disallowed.

Move 4: Don't Forget Your Home Loan Deductions

If you have a home loan and file under the old regime, you're sitting on two more deductions:

• Principal repayment — counts within the ₹1.5 lakh 80C limit.
• Interest paid — up to ₹2 lakh under Section 24(b) for a self-occupied property.

You don't need to "do" anything in March for these — they accrue automatically as you pay your EMIs — but you must collect your interest certificate from the lender to claim them correctly at filing. Our guide on the Interest Certificate for ITR shows exactly where to download it and how to report it.

If you're considering prepaying a chunk before year-end, model the interest you'll save with the Home Loan Prepayment Calculator — though remember, prepayment reduces interest but doesn't create an extra tax deduction beyond the ₹2 lakh cap. Curious how much interest your loan really costs? The Home Loan EMI Calculator breaks down principal vs interest for every month.

Move 5: Use ELSS SIP or Lumpsum — But Understand the Math

Equity Linked Savings Schemes (ELSS) are the only 80C option that invests in equities with just a 3-year lock-in. For younger taxpayers with a long horizon, this is where 80C money can genuinely grow.

Worked example: SIP vs one-time lumpsum

Suppose you have ₹90,000 of 80C headroom left. You could invest it as a lumpsum now, or you could have started a ₹7,500/month ELSS SIP earlier in the year. Let's see what a disciplined ₹7,500 monthly SIP does over 15 years at 12% CAGR:

• Total invested: ₹7,500 × 12 × 15 = ₹13,50,000
• Estimated corpus at 12%: approximately ₹37.8 lakh
• Wealth gained: roughly ₹24.3 lakh — while saving tax each year.

That's the power of combining a tax deduction with equity compounding. Model your own SIP with the SIP Calculator, or if you're deploying a year-end lumpsum, the Lumpsum Investment Calculator shows the projected value.

Pro tip: A March lumpsum into ELSS locks the entire amount for 3 years. If you're likely to need liquidity, a monthly SIP staggers the lock-in — but for a genuine last-minute FY26 deduction, a lumpsum before March 31 is what actually counts. Just don't confuse tax saving with panic buying a fund you haven't researched.

Compare Your Options: Where Should the Last-Minute Money Go?

Not all tax-saving instruments are equal. Here's a side-by-side look at the popular options for someone deploying last-minute money before March 31:

Instrument	Section	Lock-in	Indicative Return	Risk
ELSS Mutual Fund	80C	3 years	10–13% (market-linked)	Moderate–High
PPF	80C	15 years	7.1% (tax-free)	Very Low
5-Year Tax-Saver FD	80C	5 years	6.5–7.5% (taxable)	Very Low
NPS (Tier-1)	80CCD(1B)	Until age 60	9–11% (market-linked)	Moderate
Health Insurance	80D	Annual	Protection, not return	N/A

Compare the growth of a PPF vs FD vs SIP over the same period using our FD Calculator and Compound Interest Calculator before deciding. Generally: use ELSS/NPS for growth, PPF for safety, 80D for protection.

Move 6: Claim HRA, LTA and Other Salary Exemptions Correctly

Not every tax saving requires fresh investment. If you pay rent and receive House Rent Allowance, you can claim an HRA exemption — often worth tens of thousands. The exemption is the least of:

1. Actual HRA received
2. 50% of basic salary (metro) or 40% (non-metro)
3. Rent paid minus 10% of basic salary

If you paid rent this year but haven't submitted rent receipts or your landlord's PAN (mandatory when annual rent exceeds ₹1 lakh) to your employer, do it now during the proof-submission window. Estimate your exemption with the HRA Exemption Calculator. And to see your true take-home after all deductions, run the numbers through the Salary In-Hand Calculator.

Move 7: Book or Offset Capital Gains Smartly

If you've sold stocks, mutual funds, or property this year, your capital gains are part of your tax picture too. Two year-end moves matter:

• Tax-loss harvesting: If you're sitting on loss-making positions, you can book those losses to offset gains — short-term losses offset both short and long-term gains; long-term losses offset only long-term gains.
• Using indexation on property/debt (where applicable): If you've sold a long-held asset, the Cost Inflation Index reduces your taxable gain. Our guide on the Cost Inflation Index FY26-27 explains exactly how much tax you save.

These are more advanced moves — if you have significant gains, a quick chat with a tax professional before March 31 can save you far more than the fee. And if you hold foreign shares or assets, make sure you understand your reporting duty in the Foreign Assets in ITR guide, because the penalties for non-disclosure are severe.

Your March 31 Action Checklist

Here's the sequence I'd follow this week if I were you:

1. Confirm your regime. Run the Income Tax Calculator for both old and new. Proceed only if old regime helps.
2. Tally existing 80C. Add EPF + insurance + tuition + home loan principal. Find your gap to ₹1.5 lakh.
3. Fill the 80C gap with ELSS (growth) or PPF (safety).
4. Open/fund NPS for the extra ₹50,000 under 80CCD(1B).
5. Pay health insurance premium (non-cash) under 80D — cover parents too.
6. Submit HRA proofs, rent receipts and landlord PAN to your employer.
7. Collect your home loan interest certificate for Section 24(b).
8. Review capital gains and harvest losses if it makes sense.

Every one of these must be completed with money actually moving out of your account by March 31, 2026. Investments dated April 1 or later count for FY27, not FY26.

FAQ: Tax Saving Before March 31

Can I still save tax if I already opted for the new regime this year?

Salaried employees can switch between regimes at the time of filing their return, even if they declared the new regime to their employer earlier. So if you make old-regime investments before March 31 and the old regime works out cheaper, you can still opt for it while filing your ITR. Verify with our Income Tax Calculator.

What is the last date to make tax-saving investments for FY 2025-26?

March 31, 2026. The investment or payment must be completed and reflected in your account by that date. There is no grace period — an ELSS purchase or PPF deposit made on April 1 counts towards the next financial year.

How much tax can I save in total with 80C, 80D and NPS combined?

A 30%-slab taxpayer maxing ₹1.5 lakh (80C) + ₹50,000 (NPS) + ₹25,000 (80D self) can reduce taxable income by ₹2.25 lakh, saving about ₹70,200 including cess. With senior-citizen parents' health cover, the 80D portion and overall saving rise further.

Is ELSS or PPF better for last-minute tax saving?

ELSS has the shortest lock-in (3 years) and higher return potential but carries market risk; PPF is completely safe with a 7.1% tax-free return but a 15-year lock-in. Younger investors with a long horizon usually prefer ELSS; risk-averse savers prefer PPF. Model both with the PPF Calculator and SIP Calculator.

Does the ₹50,000 NPS deduction come on top of the ₹1.5 lakh 80C limit?

Yes. Section 80CCD(1B) provides an additional ₹50,000 deduction that is entirely separate from the ₹1.5 lakh combined ceiling of 80C/80CCC/80CCD(1). It's available only under the old regime.

Can I claim health insurance premium paid for my parents?

Yes. You can claim up to ₹25,000 for parents below 60 and up to ₹50,000 if they are senior citizens, over and above the limit for self and family — provided the premium is paid through a non-cash mode.

I don't have a home loan or rent — what's my best last-minute move?

Focus on maxing 80C (ELSS or PPF), grab the ₹50,000 NPS deduction under 80CCD(1B), and buy or renew health insurance under 80D. Those three levers alone can shelter over ₹2 lakh of income.

Final Word: Save Tax, But Save Smart

The scramble for tax saving before March 31 pushes too many people into rushed, poorly chosen products they regret for years — a five-year lock-in ULIP sold as an "investment," or a random ELSS fund picked in a panic. Don't let the deadline override common sense.

The right approach is simple: confirm your regime, calculate your actual gap, and then fill it with instruments that fit your goals — not just your tax bill. A ₹50,000 NPS contribution, a maxed-out 80C in a decent ELSS fund, and proper health cover for your family will do far more for your long-term wealth than any last-minute impulse buy.

Run your numbers before you commit a single rupee. Start with the Income Tax Calculator and NPS Calculator, explore the full range of free financial calculators

Image credit: Scrabble Series Income Tax — ccPixs.com, via flickr (BY 2.0), sourced from Openverse.