Tax planning is not just about calculating tax - it's about timing your income, expenses, and investments throughout the year to minimize your tax liability legally. Many people wait until the last month of the financial year to think about tax-saving, but by then, many opportunities are lost. Our tax planning timeline helps you understand important dates, deadlines, and opportunities for tax optimization throughout FY 2025-26.
For FY 2025-26, key dates include: April 1 - Financial year starts, you can begin investing in tax-saving instruments. June 15 - First quarter advance tax due (for those with tax liability above ₹10,000). September 15 - Second quarter advance tax due. December 15 - Third quarter advance tax due. January 31, 2026 - Last date to submit investment proofs to employer for reduced TDS. March 31, 2026 - Financial year ends, last chance for most tax-saving investments. July 31, 2026 - ITR filing due date for individuals and HUFs.
Our tax planning timeline calculator helps you plan your year strategically. For example, if you're planning to buy a house or property, doing it before March 31 helps you claim deductions under Section 24 and 80C for that year. If you have rental income, organize your property tax payments, repairs, and other deductions before year-end. For businesses, organizing expenses, advance tax payments, and investment planning throughout the year helps in better cash flow management.
Many salaried employees don't realize they can proactively reduce TDS by submitting investment proofs early in the year. Others miss the deadline for HRA exemption documents or home loan interest certificates, resulting in higher TDS and then having to wait for tax refund. Using the timeline, you can spread your tax-saving investments across quarters instead of rushing in March, which helps in better financial planning.
For complete list of important dates and deadlines, check the Income Tax Department's calendar at Income Tax Calendar which has all dates for advance tax, ITR filing, TDS payment, and other compliance requirements for FY 2025-26.
| Section | Limit | Purpose |
|---|---|---|
| 80C | ₹1.5L | Investments & Savings |
| 80D | ₹25K-1L | Health Insurance |
| 24 | ₹2L | Home Loan Interest |
| 80CCD(1B) | ₹50K | NPS |
| 80E | Full | Education Loan Interest |
Most taxpayers lose money not because they don’t invest, but because they invest too late. Tax laws reward planning spread across the financial year, allowing you to balance liquidity, risk, and returns instead of rushing into suboptimal products at year-end.
Timing also impacts cash flow. Advance tax payments, TDS adjustments, home loan interest certificates, and insurance renewals all have deadlines that directly affect how much tax you pay or refund you wait for.
A structured tax timeline converts tax compliance into a predictable monthly routine, helping individuals and businesses avoid penalties, reduce stress, and improve long-term financial discipline.
Breaking the financial year into quarters makes tax planning easier and more effective. Each quarter has specific actions that can significantly reduce your tax burden when executed on time.
In real-world tax planning, the biggest mistakes happen due to overestimating deductions or ignoring mid-year income changes such as job switches, bonuses, or capital gains. These events can dramatically alter your tax liability if not addressed in time.
Experienced planners focus on flexibility. They keep a buffer for unexpected income, avoid locking all funds in illiquid instruments, and continuously adjust advance tax to prevent interest under Sections 234B and 234C.
Treat your tax plan as a living document. Reviewing it monthly ensures that compliance, savings, and cash flow stay aligned with your evolving financial reality.
Start tax planning from April 1st to maximize benefits. Early planning allows for better investment choices and avoids last-minute rush.
Review monthly to track progress and adjust strategies. Quarterly assessments help optimize your approach based on changing circumstances.
Old regime allows various deductions but has higher tax rates. New regime has lower tax rates but limited deductions. Choose based on your deduction capacity.
Prioritize based on tax benefit, liquidity needs, and risk profile. Start with high-impact deductions like 80C, 80D, and home loan interest.
Most tax-saving investments must be made by March 31st. Missing the deadline means losing the tax benefit for that financial year.
Yes. Salaried individuals focus more on deductions and TDS optimization, while self-employed individuals must plan advance tax, business expenses, and audit compliance.
Yes. Proper timing of deductions, capital gains planning, and income smoothing can significantly reduce advance tax and interest penalties.
Underpayment attracts interest under Sections 234B and 234C. A tax planning timeline helps avoid these penalties.
Yes. Planning helps in documentation, investment discipline, and preparing for future income increases.