The harsh reality of March 31
It is July, you are about to file, and your 80C basket is only at ₹80,000. Can you quickly invest ₹70,000 in PPF or ELSS today and claim it on the return you are filing now?
Short answer: no.
The financial-year rule
Income tax works on the financial year (1 April to 31 March). To claim a deduction for Assessment Year 2026-27 (income earned April 2025 to March 2026), the investment or expense must have been made on or before 31 March 2026.
The 80C basket caps at ₹1.5 lakh, and the cut-off is rigid: 31 March of the financial year (Source: Section 80C, Income Tax Act). Money invested on 1 April or later belongs to the next year.
| Invested on | Counts for |
|---|---|
| 30 March 2026 | AY 2026-27 (this filing) |
| 1 April 2026 | AY 2027-28 (next year) |
What you CAN still do now
You cannot make new investments for the past year, but check whether you already spent on qualifying items before 31 March:
- Did you pay children's school tuition fees?
- Did your home loan EMI include a principal portion?
- Did you buy a house and pay stamp duty?
- Did you pay a life insurance premium HR never recorded?
These expenses fill the basket without any fresh investment.
Check your regime
If your basket is genuinely empty, the New Tax Regime may be better this year — it has lower slab rates and does not need 80C at all.
What you should do
- List only deductions you actually have proof of before 31 March.
- Add forgotten expenses (tuition, principal, stamp duty) to top up 80C.
- Compare both regimes on your real numbers before locking your choice.
Common mistake
Back-dating or claiming an April investment for the previous year. This is exactly the kind of mismatch that triggers a notice. The date on the proof is what counts.
How LastMinute ITR helps
Do not panic if you missed the window. LastMinute ITR runs a clear old vs new regime comparison on your actual pre-March deductions and flags any 80C expenses you forgot. Once you see which regime wins, you file and e-verify confidently on incometax.gov.in.