March 2026 is the most strategically important compliance month of the financial year, as it marks the closure of FY 2025-26 and the transition to a new regulatory era. The single most critical deadline is March 15, 2026, when the 4th and final instalment of Advance Tax under Section 211 of the Income Tax Act, 1961, falls due — requiring taxpayers to discharge 100% of their estimated tax liability. Businesses opting for presumptive taxation under Sections 44AD/44ADA must also pay their entire advance tax by this date in a single instalment 📋.
Alongside regular monthly GST and TDS obligations, March brings year-end responsibilities including CbC Reporting (Form 3CEAD) for multinational enterprises, Form 67 filing for Foreign Tax Credit claimants, and the deadline for filing Updated Returns for AY 2021-22. Additionally, the MCA has notified the Companies Compliance Facilitation Scheme (CCFS) 2026 vide General Circular No. 01/2026 dated February 24, 2026, offering companies a three-month window starting April 15, 2026, to regularise pending filings at just 10% of accumulated additional fees. Businesses must also note that the proposed Income Tax Act, 2025, along with the Income Tax Rules, 2026, is set to become effective from April 1, 2026, making this the final compliance month under the existing Income Tax Act, 1961 framework.
🚨 Year-End Alert: Final Month Under the Income Tax Act, 1961
March 2026 holds historic significance as the last compliance month governed by the Income Tax Act, 1961. Effective April 1, 2026, the proposed Income Tax Act, 2025, along with the Income Tax Rules, 2026, will come into force (subject to formal notification). While all FY 2025-26 compliance obligations continue under the existing framework, businesses should begin preparing their systems, processes, and teams for the transition. Key areas requiring preparation include updated ITR forms, revised TDS/TCS rate structures, rationalised MAT provisions, and simplified assessment procedures.
Most Important Due Dates for March 2026 (Risk-Prioritised)
| No | Governing Law | Compliance Due | Due Date (Mar 2026) | Who Should File / Brief Particulars |
|---|---|---|---|---|
| 1 | Income Tax Act, 1961 (Sec 211) | Advance Tax – 4th Instalment | 15 Mar 2026 | 100% of estimated tax liability for FY 2025-26 (AY 2026-27). Applicable to all companies, LLPs, professionals, and individuals with advance tax liability exceeding Rs. 10,000. |
| 2 | Income Tax Act, 1961 (Sec 44AD/44ADA) | Advance Tax – Presumptive Taxation | 15 Mar 2026 | Entire advance tax payable in a single instalment by taxpayers under presumptive taxation. |
| 3 | Income Tax Act, 1961 | TDS/TCS Deposit (Challan 281) | 07 Mar 2026 | All deductors must deposit TDS/TCS deducted during February 2026. |
| 4 | CGST Act, 2017 | GSTR-1 (Monthly) | 11 Mar 2026 | Monthly outward supplies return for February 2026 by taxpayers with turnover > Rs. 5 crore or those who have opted for monthly filing. |
| 5 | CGST Act, 2017 | GSTR-3B (Monthly) | 20 Mar 2026 | Monthly summary return for February 2026 for taxpayers with turnover > Rs. 5 crore or monthly filers. |
| 6 | EPF & MP Act, 1952 / ESI Act, 1948 | EPF & ESI Contributions | 15 Mar 2026 | Employers must deposit EPF and ESI contributions for wage month February 2026 and file ECR. |
| 7 | Income Tax Act, 1961 (Sec 92D/286) | CbC Report (Form 3CEAD) | 31 Mar 2026 | Filing of Country-by-Country Report by eligible MNE constituent entities. Due within 12 months from end of the reporting accounting year. 31 Mar 2026 applies where reporting year ends 31 Mar 2025. |
| 8 | Income Tax Act, 1961 (Rule 128) | Form 67 – Foreign Tax Credit | 31 Mar 2026 | Filing of Form 67 by taxpayers claiming Foreign Tax Credit for FY 2024-25. |
| 9 | Income Tax Act, 1961 (Sec 139(8A)) | Updated Return – AY 2021-22 | 31 Mar 2026 | Last date to file Updated Return (ITR-U) for AY 2021-22 with additional tax under Section 140B. |
| 10 | CGST Act, 2017 (Sec 10) | Form CMP-02 (Composition Scheme) | 31 Mar 2026 | Taxpayers opting into the Composition Scheme for FY 2026-27 must file CMP-02 by this date. |
Income Tax & TDS Compliance – March 2026 💰
March 2026 is dominated by the year’s most significant direct tax deadline — the 4th and final instalment of Advance Tax. This month also carries critical international tax reporting obligations and the year-end closure of TDS compliance for the current financial year. The following table provides the complete breakdown:
| Due Date | Purpose | Period | Description |
|---|---|---|---|
| 02 Mar 2026 | Challan-cum-Statement (Sec 194M) | Jan 2026 | Furnishing challan-cum-statement (Form 26QD) for TDS on payments to contractors/professionals by individuals/HUFs exceeding Rs. 50 lakh, made or credited in January 2026. |
| 07 Mar 2026 | Deposit of TDS/TCS (Challan 281) | Feb 2026 | Monthly deposit of TDS/TCS deducted during February 2026. Government deductors who deposit through book entry (Treasury Challan) must deposit on the same day of deduction. |
| 15 Mar 2026 | 4th Instalment of Advance Tax | FY 2025-26 (AY 2026-27) | Payment of the 4th and final instalment of Advance Tax. Taxpayers must discharge 100% of total estimated tax liability minus advance tax already paid in earlier instalments (15% by June 15, 45% by Sep 15, 75% by Dec 15). |
| 15 Mar 2026 | Advance Tax – Presumptive Taxation (Sec 44AD/44ADA) | FY 2025-26 (AY 2026-27) | Taxpayers under presumptive taxation schemes must pay their entire advance tax liability in a single instalment by this date. |
| 15 Mar 2026 | Form 24G | Feb 2026 | Government offices where TDS/TCS for February 2026 has been paid without production of a challan must furnish Form 24G by this date. |
| 17 Mar 2026 | TDS Certificates (Form 16B/16C/16D/16E) | Jan 2026 | Issuance of TDS certificates for property purchase u/s 194-IA (Form 16B), rent u/s 194-IB (Form 16C), payments to contractors/professionals u/s 194M (Form 16D), and virtual digital asset transactions u/s 194S (Form 16E) for deductions made in January 2026. |
| 30 Mar 2026 | Challan-cum-Statement (194-IA/IB/M/S) | Feb 2026 | Furnishing challan-cum-statement (Form 26QB/26QC/26QD/26QE) for TDS on property purchase, rent by individuals/HUF exceeding Rs. 50,000 p.m., contractual payments exceeding Rs. 50 lakh, and virtual digital asset transactions, for deductions made in February 2026. |
| 31 Mar 2026 | CbC Report (Form 3CEAD) | Reporting accounting year ending 31 Mar 2025 | Country-by-Country Report filing by eligible Indian constituent entities of multinational enterprise groups meeting prescribed revenue thresholds under Section 286. Due within 12 months from the end of the MNE group’s reporting accounting year. The date of 31 March 2026 applies where the reporting accounting year ends on 31 March 2025; groups following a calendar year (ending 31 Dec 2024) would have had their due date on 31 December 2025. |
| 31 Mar 2026 | Form 67 – Foreign Tax Credit | FY 2024-25 | Mandatory filing by taxpayers claiming Foreign Tax Credit for income earned overseas during FY 2024-25 where the ITR has already been filed. Failure to file may jeopardise FTC eligibility. Note: Under the proposed Draft Income Tax Rules, 2026 (released by CBDT for public consultation in February 2026), Form 67 is expected to be replaced by Form 44 from April 1, 2026, with mandatory CA verification for claims exceeding Rs. 1 lakh. These changes are subject to final notification. |
| 31 Mar 2026 | Updated Return (ITR-U) – AY 2021-22 | AY 2021-22 | Last date to file Updated Return under Section 139(8A) for Assessment Year 2021-22. Additional tax applies at rates prescribed under Section 140B (currently 50% of tax and interest payable, being the 4th year from the end of the relevant AY). |
Important Notes for Advance Tax Compliance:
Advance Tax is payable by all taxpayers — companies, LLPs, professionals, and individuals — whose estimated tax liability after TDS exceeds Rs. 10,000 in a financial year. Failure to pay adequate advance tax attracts interest under Section 234B (1% per month on shortfall from assessed tax) and Section 234C (1% per month on instalment shortfall). For the 4th instalment, taxpayers must compute 100% of estimated tax liability for FY 2025-26, deduct TDS credits and advance tax already paid, and deposit the balance by March 15. Taxpayers under presumptive taxation schemes (Sections 44AD and 44ADA) who have not paid advance tax in earlier instalments must pay the entire liability in this single instalment ⚡.
Advance Tax Instalment Summary – FY 2025-26 (AY 2026-27):
| Instalment | Due Date | Cumulative % of Tax Liability | Amount Payable |
|---|---|---|---|
| 1st Instalment | 15 June 2025 | 15% | 15% of estimated tax |
| 2nd Instalment | 15 September 2025 | 45% | 45% minus advance tax already paid |
| 3rd Instalment | 15 December 2025 | 75% | 75% minus advance tax already paid |
| 4th Instalment | 15 March 2026 | 100% | 100% minus advance tax already paid |
Goods and Services Tax (GST) – March 2026 📊
March 2026 carries standard monthly GST filings for February 2026 transactions. QRMP taxpayers are in the second month (M2) of Q4 (Jan-Mar 2026), with IFF and PMT-06 obligations continuing. A critical year-end compliance is the deadline for filing Form CMP-02 by taxpayers opting into the Composition Scheme for FY 2026-27. Below are all GST-related due dates:
| Due Date | Purpose (Form) | Period | Description |
|---|---|---|---|
| 10 Mar 2026 | GSTR-7 / GSTR-8 | Feb 2026 | Returns for GST TDS/TCS by deductors and e-commerce operators for tax deducted/collected in February 2026. |
| 11 Mar 2026 | GSTR-1 (Monthly) | Feb 2026 | Monthly outward supplies return for taxpayers with turnover > Rs. 5 crore or those who have opted for monthly filing. |
| 13 Mar 2026 | IFF (QRMP) – Invoice Furnishing Facility | Feb 2026 | Optional B2B invoice upload by QRMP taxpayers for February 2026 (M2 of Q4: Jan-Mar 2026). Enables buyers to claim ITC in their monthly GSTR-3B. |
| 20 Mar 2026 | GSTR-5 | Feb 2026 | Non-Resident Taxable Persons (NRTP) monthly return for February 2026. Due on the 20th of the following month as per Section 39(5) of the CGST Act. |
| 13 Mar 2026 | OIDAR (Online Information and Database Access or Retrieval) service providers’ monthly return for February 2026. | Feb 2026 | Input Service Distributor (ISD) return – ITC received and distributed during February 2026. |
| 20 Mar 2026 | GSTR-5A | Feb 2026 | OIDAR (Online Information and Database Access or Retrieval) services providers monthly return for February 2026. |
| 20 Mar 2026 | GSTR-3B (Monthly) | Feb 2026 | Monthly summary return for taxpayers with turnover > Rs. 5 crore or monthly filers. Liability in Table 3 continues to be auto-populated from GSTR-1 and remains non-editable. |
| 25 Mar 2026 | PMT-06 (QRMP) | Feb 2026 | Monthly tax payment by QRMP taxpayers for February 2026 (M2 of Q4). |
| 31 Mar 2026 | CMP-02 (Composition Scheme) | FY 2026-27 | Taxpayers wishing to opt into the Composition Scheme under Section 10 of the CGST Act for the Financial Year 2026-27 must file Form CMP-02 by this date. |
Key Points for GST Year-End in March 2026:
March is the financial year-end, and GST compliance during this month directly impacts annual return preparation. Businesses must ensure complete reconciliation of GSTR-1 and GSTR-3B with their books of accounts before the year closes. Input Tax Credit (ITC) for FY 2025-26 that has not been claimed in GSTR-3B returns filed up to September 2026 will be lost, as per Section 16(4) of the CGST Act; however, the groundwork for ITC reconciliation should begin now. QRMP taxpayers should note that the quarterly GSTR-1 and GSTR-3B for Q4 (Jan-Mar 2026) will be due in April 2026. Taxpayers opting into the Composition Scheme for FY 2026-27 via CMP-02 must also file Form ITC-03 within 60 days (by May 30, 2026) to reverse applicable input tax credits 📌.
Companies Act & LLP Compliance (ROC Filings) – March 2026 🏢
March 2026 is a relatively lean month for mandatory ROC filings. The key development is the notification of CCFS 2026, which offers relief for companies with pending filings. Additionally, companies should focus on closing their FY 2025-26 books and preparing for the upcoming annual compliance cycle.
| Due Date | Purpose (Form) | Authority | Description |
|---|---|---|---|
| 31 Mar 2026 | Financial Year Closure | Companies Act, 2013 | Close of FY 2025-26 for all companies with March year-end. This triggers the annual compliance cycle — statutory audit, Board meetings for financial statement approval, AGM, and subsequent ROC filings. |
| Ongoing | MSME-1 Preparation | MCA/ROC | Companies should begin preparing data for Form MSME-1 (outstanding payments to Micro and Small Enterprises) for H2 FY 2025-26 (Oct 2025 – Mar 2026), which will be due on April 30, 2026. |
🚨 CCFS 2026 – Companies Compliance Facilitation Scheme Notified
The Ministry of Corporate Affairs notified the Companies Compliance Facilitation Scheme, 2026 vide General Circular No. 01/2026 dated February 24, 2026, offering a three-month window (April 15, 2026, to July 15, 2026) for companies to regularise pending statutory filings. Key highlights of CCFS 2026 include:
- Filing Relief: Companies can file overdue forms — including MGT-7, MGT-7A, AOC-4 (all variants), ADT-1, FC-3, FC-4, and legacy forms under the Companies Act, 1956 — by paying normal fees plus only 10% of accumulated additional fees (effectively a 90% waiver).
- Dormancy Option: Inactive companies can apply for dormant status by filing Form MSC-1 at just 50% of the normal filing fee, allowing them to remain registered with minimal future compliance.
- Strike-Off Route: Companies seeking closure can apply for voluntary strike-off via Form STK-2 at 25% of the applicable filing fee.
- Immunity from Prosecution: Companies that complete filings before an adjudication notice is issued, or within 30 days of such notice, will not face penalties under Sections 92 and 137 of the Companies Act, 2013.
Companies that have been struck off, that are under liquidation, or against which action under Section 7 of the Insolvency and Bankruptcy Code has been initiated, are not eligible. Post July 15, 2026, MCA has indicated that strict enforcement action will follow against companies that remain in default. Businesses with long-pending non-compliances should use March to compile their records and prepare for filing once the scheme window opens on April 15, 2026 🎯.
Labour Law Compliance (EPF & ESI) – March 2026 👷
Employers must ensure the timely deposit of EPF and ESI contributions for the wage month of February 2026. March being the financial year-end, it is also important to reconcile employee PF and ESI records for the entire year and ensure all UANs are activated with updated KYC details.
| Due Date | Compliance | Period | Particulars |
|---|---|---|---|
| 15 Mar 2026 | EPF & ESI Contributions | Wage Month: Feb 2026 | Deposit contributions and file ECR (Electronic Challan cum Return). Delays attract interest at 12% p.a. u/s 7Q of the EPF Act plus damages as per para 32A of the EPF Scheme and latest EPFO notifications (generally computed as a percentage of arrears depending on the period of default). |
EPF/ESI Contribution Rates:
EPF contribution is 12% by employee plus 12% by employer. The employer’s 12% is split as 3.67% to EPF and 8.33% to EPS. ESI contribution is 0.75% by employee plus 3.25% by employer, applicable for employees earning up to Rs. 21,000 per month.
Late payment consequences include interest at 12% p.a. on EPF delays plus damages as per para 32A of the EPF Scheme and latest EPFO notifications (generally computed as a percentage of arrears depending on the period of default), and penalties under the ESI Act as per applicable regulations. Additionally, employees’ EPF/ESI contributions paid after the statutory due date are generally disallowed as a deduction under section 36(1)(va) of the Income Tax Act, and delayed employer contributions are governed by section 43B.
Year-End PF/ESI Checklist: Reconcile all monthly ECR filings with payroll records for FY 2025-26. Ensure international workers’ PF compliance is updated. Verify ESI contribution details for employees who crossed the Rs. 21,000 wage ceiling during the year.
Foreign Trade (DGFT) & RBI – March 2026 🌐
| Due Date | Purpose (Form) | Period | Description |
|---|---|---|---|
| Within 7 working days from month-end (as applicable) | RBI Form ECB-2 | Feb 2026 | Monthly ECB (External Commercial Borrowing) return due within 7 working days from the end of the month to which it relates. Reported through the RBI FIRMS portal. Actual date may vary depending on bank holidays in the relevant jurisdiction. |
| As applicable | FC-GPR | As applicable | Report to RBI within 30 days of allotment of shares to foreign investors under FDI route. Filed through the FIRMS portal. |
| As applicable | FC-TRS | As applicable | Report transfer of shares between resident and non-resident within 60 days of transfer. Filed through the FIRMS portal. |
Important Note for Exporters: While the IEC annual updation for FY 2026-27 will be due between April-June 2026, exporters should use March to review their IEC details and ensure all information is current before the validation window opens on April 1, 2026.
State-Specific Compliances (Professional Tax) – March 2026 💼
Important: Professional Tax slabs and due dates are state-specific and change frequently through State Finance Acts and notifications. The table below is illustrative only and is not to be treated as up-to-date legal rates. Always verify on the respective State PT portal (Commercial Tax / Profession Tax department) before filing.
| State | Due Date (Mar) | Frequency | Income Slabs (Illustrative) |
|---|---|---|---|
| Andhra Pradesh | 10 Mar | Monthly | Up to Rs. 15,000: Nil; Rs. 15,001–Rs. 20,000: Rs. 150/month; Above Rs. 20,000: Rs. 200/month |
| Telangana | 10 Mar | Monthly | Up to Rs. 15,000: Nil; Rs. 15,001–Rs. 20,000: Rs. 150/month; Above Rs. 20,000: Rs. 200/month |
| Karnataka | 20 Mar | Monthly | Up to Rs. 25,000: Nil; Above Rs. 25,000: Rs. 200/month (Rs. 2,500/annum) |
| Assam | 28 Mar | Monthly | Up to Rs. 10,000: Nil; Rs. 10,001–Rs. 15,000: Rs. 150/month; Rs. 15,001–Rs. 25,000: Rs. 180/month; Above Rs. 25,000: Rs. 208/month |
| West Bengal | 21 Mar | Monthly | Up to Rs. 10,000: Nil; Rs. 10,001–Rs. 15,000: Rs. 110/month; Rs. 15,001–Rs. 25,000: Rs. 130/month; Rs. 25,001–Rs. 40,000: Rs. 150/month; Above Rs. 40,000: Rs. 200/month |
| Maharashtra | 31 Mar | Monthly/Annual | Male: Up to Rs. 7,500: Nil; Rs. 7,501–Rs. 10,000: Rs. 175/month; Above Rs. 10,000: Rs. 200/month. Female: Up to Rs. 25,000: Nil; Above Rs. 25,000: Rs. 200/month. |
Transition to Income Tax Act, 2025 – Key Preparation Checklist 📋
The proposed Income Tax Act, 2025, effective April 1, 2026, replaces the six-decade-old Income Tax Act, 1961. While March 2026 compliance remains under the existing law, businesses should initiate transition planning now. The following table outlines key changes businesses should prepare for:
| Area | Current Position (IT Act, 1961) | Proposed Change (IT Act, 2025) | Action Required in March 2026 |
|---|---|---|---|
| Tax Regime | Old & New regimes coexist | New tax regime as default | Review employee tax declarations for April payroll |
| MAT Rate | 15% under Section 115JB | Proposed reduction to 14% (final tax) | Recalculate MAT liability for FY 2026-27 projections |
| ITR Revision | Revised return by Dec 31 of AY | Proposed extension to March 31 of AY (with nominal fee) | Update internal compliance calendars |
| TCS on LRS | 5% on education/medical; 20% on general remittances | 20% of the disputed demand | Update TCS calculation systems for April remittances |
| Assessment & Penalty | Separate proceedings | Proposed integrated common order | Brief internal teams on procedural changes |
| Pre-deposit for Appeals | 20% of disputed demand | Proposed reduction to 10% | Review pending appeal strategies |
| Foreign Tax Credit Form | Form 67 (self-certified) | Proposed Form 44 with mandatory CA verification for claims above Rs. 1 lakh (as per Draft IT Rules, 2026 — subject to final notification) | Complete all FY 2024-25 Form 67 filings before March 31 |
Note: These changes are based on the Income Tax Act, 2025 (enacted) and Draft Income Tax Rules, 2026 (released by CBDT for public consultation via the official e-filing portal in February 2026). Final rules and forms are subject to formal notification by CBDT. Businesses should monitor official CBDT notifications for final applicability and effective dates.
March 2026 Non-Compliance Penalty Matrix (Quick Reference) ⚖️
Note: The figures below are illustrative, based on current per-day late fee provisions. Actual penalties should be computed on the respective portals or as per the latest notifications.
| Compliance | Penalty Structure | Additional Consequences |
|---|---|---|
| Advance Tax (Shortfall) | Interest u/s 234B: 1% per month on total shortfall from assessed tax. Interest u/s 234C: 1% per month on instalment shortfall. | Late fee per day under Section 47 of the CGST Act (Rs. 50/day for regular; Rs. 20/day for nil) subject to turnover-based caps |
| TDS Deposit (Challan 281) | Interest at 1.5% per month from date of deduction to date of deposit u/s 201(1A) | Prosecution risk for deliberate non-deposit u/s 276B (3 months to 7 years imprisonment). |
| GSTR-1 (Monthly) | Penalties under the ESI Act; disallowance under Income Tax Act for delayed employees’ contributions. | Buyer’s ITC delayed; GSTR-3B filing for subsequent period restricted until GSTR-1 filed. |
| GSTR-3B (Monthly) | Late fee Rs. 50 per day (Rs. 20 per day for nil returns), subject to per-return maximum limits notified for different turnover slabs (Notification 19/2021-Central Tax and subsequent amendments); interest at 18% p.a. on unpaid tax | ITC mismatch notices possible; e-way bill generation may be blocked after two consecutive defaults. |
| EPF/ESI | Interest at 12% p.a. on delays (PF) plus damages as per para 32A of EPF Scheme and latest EPFO notifications (percentage of arrears based on period of default) | Penalties under the ESI Act; disallowance under the Income Tax Act for delayed employees’ contributions. |
| Updated Return (ITR-U) | If missed, the opportunity to file ITR-U for AY 2021-22 is lost permanently. | No remedy available after March 31, 2026, for correcting income disclosures for AY 2021-22. |
| CbC Report (Form 3CEAD) | Penalty u/s 271GB: Rs. 5,000 per day for first month, Rs. 15,000 per day thereafter for failure to furnish the report. Rs. 50,000 per day for inaccurate reporting. | Penalty u/s 271GB: Rs. 5,000 per day for the first month, Rs. 15,000 per day thereafter for failure to furnish the report. Rs. 50,000 per day for inaccurate reporting. |
FAQ’s
What is the last date for paying Advance Tax for FY 2025-26?
What is the Updated Return (ITR-U) deadline for AY 2021-22, and who should file?
What is Form CMP-02, and who should file it by March 31, 2026?
What is the CCFS 2026 scheme, and can companies file under it in March 2026?
Are there any quarterly GST returns due in March 2026?
What is Form 3CEAD, and who must file it by March 31, 2026?
Will the Income Tax Act, 2025, affect my March 2026 compliance?
What happens if I miss the March 15 Advance Tax deadline?
Disclaimer: This general guidance calendar reflects laws/notifications as of March 1, 2026, incorporating the Companies Compliance Facilitation Scheme, 2026 (General Circular No. 01/2026 dated February 24, 2026), the Income Tax Act, 2025 (enacted), and Draft Income Tax Rules, 2026 (released by CBDT for public consultation — subject to final notification for April 1, 2026 effectiveness). Regulations may change; confirm on official MCA/CBDT/CBIC portals (www.incometax.gov.in, www.gst.gov.in, www.epfindia.gov.in, www.esic.gov.in). This is not legal or tax advice. Consult professionals for specific situations. SetIndiabiz offers complete compliance support—alerts, expert advice, and streamlined filings—to help you focus on growth. Transform compliance into a strategic advantage.
Author Bio
Setindiabiz Editorial Team is a multidisciplinary collective of Chartered Accountants, Company Secretaries, and Advocates offering authoritative insights on India’s regulatory and business landscape. With decades of experience in compliance, taxation, and advisory, they empower entrepreneurs and enterprises to make informed decisions.
