The final quarter of the financial year, spanning from January to March, represents a period of heightened compliance activity for all taxpayers in India. This guide provides a detailed explanation of the major tax actions, statutory deadlines, and mandatory requirements that must be fulfilled before the financial year concludes on 31st March, incorporating relevant legal sections for clarity.

The January to March quarter is fundamentally important as it is the final period for taxpayers to organize their financial affairs for the entire year. Actions taken or missed during this time directly influence the annual tax liability. It is the last opportunity to undertake crucial activities such as:

• Finalizing annual tax liability
• Claiming deductions
• Advance tax compliance
• TDS/TCS compliance
• Investment eligibility
• Year-end accounting adjustments

Several income and expense items are finalized for tax purposes only by 31st March. Failure to meet the deadlines stipulated within this quarter can lead to adverse financial consequences, including penalties, late fees, interest, and loss of deductions.

Before the financial year ends on 31st March, taxpayers must ensure completion of several mandatory payments. Any amount paid by way of advance tax on or before 31st March is treated as advance tax paid during that financial year.

The primary payments include:

• Fourth installment of Advance Tax
• TDS/TCS adjustments
• Final tax projections
• Settlement of potential interest liability under Section 234B and 234C

The deadline for the fourth and final instalment of advance tax is 15th March.

Applicable to:

• salaried individuals with additional income
• business owners
• consultants
• freelancers
• professionals

Taxpayers under Section 44AD or 44ADA (presumptive taxation) must pay 100% of their advance tax on or before 15th March.

Failure to pay advance tax or deferment leads to mandatory interest:

Section 234B — Interest for Short Payment

• levied @ 1% per month
• calculated if the advance tax paid < 90% of the assessed tax

Section 234C — Interest for Deferment

• levied @ 1% per month
• charged for delay in installments (15 June, 15 Sept, 15 Dec, and 15 March)

Yes. Employees must ensure:

• submission of investment proofs
• completion of final tax declarations
• checking Form 16 projections
• correct TDS computation
• valid HRA documents

This avoids excess tax deduction in March salary. Form 16 must be furnished under Rule 31 of the Income-tax Rules.

Businesses must complete:

• TDS/TCS deposits
• year-end GST reconciliations
• revenue cut-off
• Form 26AS matching
• provisioning
• asset capitalization
• closing books
• statutory reconciliations

TDS/TCS statements for the quarter are filed as per Rule 31A.

Businesses must complete:

• TDS/TCS deposits
• year-end GST reconciliations
• revenue cut-off
• Form 26AS matching
• provisioning
• asset capitalization
• closing books
• statutory reconciliations

TDS/TCS statements for the quarter are filed as per Rule 31A.

• estimate annual tax well before March
• verify 26AS
• pay advance tax by 15th March
• submit proofs on time
• perform GST reconciliation monthly/quarterly

For most investment-linked deductions, no.

After 31 March:

• deductions freeze
• investment eligibility closes
• tax year legally ends
• interest will apply
• post-March tax payments are not counted as advance tax

Common errors:

• waiting until last week
• ignoring interest calculation
• incomplete proofs
• incorrect HRA documentation
• failing to consider non-salary income

• projected budget
• tax calendar
• advance tax calendar
• GST tracker
• payroll updates
• compliance framework for FY

The last quarter is not just administrative—it determines your legal tax liability and final savings. Proper execution avoids penalties, prevents excess TDS, reduces cash-flow impact, and ensures a smooth filing season. Early planning with specialised advisory support ensures compliance and financial efficiency.

VFSL provides specialised tax and compliance support led by senior Chartered Accountants. We focus on practical planning, legal accuracy, and complete year-end compliance execution.

What makes us different:

• End-to-end tax closure for FY
• Correct advance-tax & TDS evaluation
• Accurate deductions & proofs review
• GST + Income Tax compliance under one team
• Personalised tax review with legal guidance

Whether you are a salaried individual, business owner, startup, or SME, VFSL helps ensure a compliant and penalty-free financial year end with confidence.