Financial Year-End Checklist 2025: Smart Moves to Maximise Savings & Plan Ahead

Posted on Tuesday, March 25th, 2025 | By IndusInd Bank

March 31st is fast approaching! Are your finances in order? Whether it’s tax-saving, clearing debts, or reviewing investments, the financial year-end isn’t just about meeting deadlines. It’s your last chance to fix financial gaps and start the new year with confidence. Miss it, and you might end up paying more taxes or missing out on deductions. Let’s make sure that doesn’t happen!

Here are some essential money moves you can make before the financial year ends to maximise tax benefits, optimise cash flow, and prepare for FY 2025-26 confidently.

1. Year-End Planning: Ensure You Maximise Deductions

Before you think about the next financial year, it’s important to clean up your financial records for the current one. Here are some crucial tasks to check off:

Old vs. New Tax Regime: Have You Declared the Right One?

If you haven’t yet declared your tax regime to your employer, do it before March 31.

The Old Tax Regime allows deductions under Sections 80C (PPF, EPF, life insurance, tax-saving FDs), 80D (health insurance), and HRA exemptions.

The New Tax Regime has lower tax rates but doesn’t offer most deductions. Ensure you’ve picked the one that benefits you most.

Maximise 80C Benefits (Up to ₹1.5 Lakh)

Investments made before March 31, 2025, qualify for deductions. Eligible options under Section 80C include:

• Employee Provident Fund (EPF) contributions
• Public Provident Fund (PPF) deposits
• National Pension System (NPS) contributions
• Tax-saving Fixed Deposits (5-year lock-in FDs)
• Life Insurance Premiums

Claim Health & Life Insurance Deductions (80D & 10(10D))

Health Insurance: You can claim deductions of up to:

₹25,000 for self & family (₹50,000 if senior citizens are included).

Life Insurance: Proceeds from life insurance policies may be tax-exempt under Section 10(10D). Ensure premiums are paid before the deadline.

Make Charitable Donations Before March 31 (80G Benefits)

Donations to eligible charities can give you 50% or 100% tax deductions under Section 80G.

Ensure payments are made via cheque, UPI, or online transfers (cash donations above ₹2,000 don’t qualify).

Check HRA & LTA Claims

If you’re eligible for House Rent Allowance (HRA), submit rent receipts to your employer before March 31 to claim exemptions.

If you haven’t used Leave Travel Allowance (LTA), check if you can claim travel expenses for tax benefits.

2. Smart Tax Planning: Last-Minute Strategies Without the Rush

While last-minute tax-saving isn’t ideal, there’s still time to make informed decisions if you act quickly.

Check Advance Tax Payments (If Applicable)

If your total tax liability exceeds ₹10,000 in a year, you should have paid advance tax in instalments.

The final advance tax instalment was due by March 15. If you’ve missed it, pay the pending amount before March 31 to avoid penalties.

Review Credit Card Bills & Outstanding Loans

Check for any unpaid dues on your credit cards and clear high-interest debts first.

Avoid making large purchases on your card if you can’t repay in full before the statement due date.

Prepay Loans (If Possible) to Reduce Interest Burden

If you have a personal loan, home loan, or car loan, consider making a lump-sum payment to reduce the interest paid over time.

Check if prepayment penalties apply before making additional payments.

Check Your Credit Score

A credit score of 750+ is ideal for easy loan approvals.

If you’ve missed EMI payments, clear them before March 31 to prevent negative reporting.

3. Building a Smart Asset Allocation Strategy for FY 2025-26

Before making any last-minute investment decisions, it’s crucial to assess your risk appetite, investment horizon, and how each option aligns with your financial goals.

Review & Rebalance Your Portfolio

If your investments have shifted from your target allocation, consider rebalancing for stability.

For example, if equity exposure has increased due to market growth, you may want to move some gains into safer assets like fixed-income options.

Understand Risk-Based Investing

Investors with short-term goals (buying a house, child’s education in 3-5 years) may prefer stable investments like FDs or debt mutual funds.

Those with long-term goals (retirement, wealth building) can consider higher-risk asset classes.

If investing in commodities or alternative assets, check their market cycles before making decisions.

Set Up Systematic Investments (SIPs) for the Next FY

If you’re planning new investments, setting up an SIP in April ensures you start the new FY with financial discipline.

4. Preparing for a Strong Start in FY 2025-26

Once you’ve wrapped up the financial year, it’s time to lay a solid foundation for the new one.

• Review Your Budget for Inflation & New Goals
  • Prices rise every year—so should your budget.
  • Account for increased expenses, salary hikes, or new financial commitments in the next year.
• Ensure Your Emergency Fund is Adequate
  • Ideally, you should have 6-12 months’ worth of expenses in an easily accessible account.
  • If you’ve dipped into it recently, plan to replenish it in the next FY.
• Check Insurance Policies & Renewal Dates
  • Review life, health, and motor insurance policies.
  • Ensure the sum assured is sufficient based on your current financial responsibilities.

Also Read: FY 2025-26 Investment Blueprint: How to Build a Future-Ready Portfolio

Wrapping Up!

So, what should be done before March 31^st? Here’s a year-end checklist for you:

• Maximise tax-saving investments (PPF, EPF, NPS, FDs, insurance)
• Submit declarations for HRA, LTA, and salary deductions
• Ensure advance tax payments are up to date (if applicable)
• Clear outstanding loans or credit card dues to avoid high-interest charges
• Review investment portfolio and rebalance for FY 2025-26
• Set up SIPs or automate savings from your bank account for financial discipline
• Update nominee details in all financial accounts
• Ensure insurance policies are active and adequate

By taking these actions before March 31, you can avoid last-minute tax stress, strengthen your financial foundation, and step into FY 2025-26 with confidence. So, don’t wait! Tick off these tasks now and start the new financial year on the right note!