India Compliance Roundup: March — Key Deadlines, Filings & Regulatory Updates

Why March Is the Most Consequential Month in India's Compliance Calendar

March is not just another month on India's compliance calendar — it is the month that closes the financial year. Every transaction recorded, every investment made, and every deduction claimed between April 1, 2025 and March 31, 2026 falls within FY 2025-26 (Assessment Year 2026-27). For foreign-owned companies operating in India, March carries a dual burden: routine monthly filings (GST, TDS, PF, ESI) run alongside year-end obligations that determine your tax position, audit readiness, and regulatory standing for the entire year ahead.

Missing a March deadline does not just trigger a penalty — it can cascade into audit complications, delayed financial statements, and frozen investment rounds. This roundup maps every critical deadline for March 2026, verified against current government notifications, with specific attention to obligations that affect foreign-invested companies and their parent entities abroad.

March 2: Challan-cum-Statement Under Section 194M

The challan-cum-statement for tax deducted under Section 194M (payments to contractors and professionals by individuals and HUFs exceeding INR 50 lakh) for January 2026 is due by March 2, 2026. This applies when payments are made to resident contractors or professionals, and the payer is not subject to audit under Section 44AB.

Who This Affects

While this primarily targets individuals and HUFs, foreign-owned companies with Indian directors or promoters making personal payments to contractors should ensure their directors are aware of this obligation. The TDS rate under Section 194M is 5% on amounts exceeding INR 50 lakh in a financial year.

March 7: TDS/TCS Deposit for February 2026

All tax deducted at source (TDS) and tax collected at source (TCS) during February 2026 must be deposited with the government by March 7, 2026. This covers deductions under all sections — salary (Section 192), contractor payments (Section 194C), professional fees (Section 194J), rent (Section 194I), and critically for foreign companies, payments to non-residents under Section 195.

Penalty for Late Deposit

Interest at 1.5% per month (or part thereof) applies from the date of deduction to the date of deposit. For cross-border payments, ensure that Form 15CA/15CB has been filed before remittance to claim DTAA benefits — the treaty rate cannot be applied retroactively if forms are not filed in time.

March 11: GSTR-1 for February 2026

Monthly filers must submit GSTR-1 (outward supply details) for February 2026 by March 11. This return captures all B2B invoices, B2C sales, credit and debit notes, and export invoices issued during February. For companies registered under the GST composition scheme, this deadline does not apply — they file GSTR-4 annually by June 30.

QRMP Scheme Consideration

Businesses with turnover up to INR 5 crore that have opted for the Quarterly Return Monthly Payment (QRMP) scheme file GSTR-1 quarterly instead. However, they must still make monthly tax payments via the Invoice Furnishing Facility (IFF) by the 13th of each month for the first two months of the quarter.

March 13: GSTR-5 for February 2026 (Non-Resident Taxable Persons)

Non-resident taxable persons registered under GST must file GSTR-5 by March 13. This return is specifically relevant for foreign companies that have obtained GST registration without a permanent establishment in India — for instance, companies providing services in India on a project basis.

March 15: Fourth and Final Advance Tax Installment

This is the single most important tax deadline in March. Companies must pay the fourth installment of advance tax for FY 2026-27, bringing the cumulative payment to 100% of the estimated annual tax liability. The advance tax schedule for the full year is:

Penalties for Shortfall

Interest under Section 234B applies at 1% per month on the difference between 90% of assessed tax and the advance tax actually paid. Section 234C imposes an additional 1% per month interest for deferment of individual installments. For companies opting for the concessional tax rate under Section 115BAA (effective rate 25.17%), the advance tax calculation should reflect this rate. These interest charges are not deductible as business expenses.

Presumptive Taxation

Taxpayers under presumptive taxation schemes (Sections 44AD and 44ADA) must pay the entire advance tax in a single installment by March 15 — they are not required to pay quarterly installments.

March 15: PF and ESI Deposits for February 2026

Employers must deposit Provident Fund (PF) contributions for February 2026 by March 15, 2026. The contribution rate is 12% of basic salary plus dearness allowance from both employer and employee. The employer's 12% is split: 3.67% to EPF and 8.33% to the Employees' Pension Scheme (EPS).

ESI contributions for February 2026 are also due by March 15. The employer contributes 3.25% and the employee contributes 0.75% of gross wages, applicable to establishments with 10 or more employees where employees earn up to INR 21,000 per month.

Penalty for Late PF Deposit

Late deposit of PF attracts damages under Section 14B of the EPF Act — 5% per annum for delays up to 2 months, escalating to 25% per annum for delays beyond 6 months. The EPFO also charges administrative charges at 0.50% of total wages.

March 15: Form 24G for February 2026

Government deductors who deposit TDS/TCS without using a challan (book entry) must file Form 24G for February 2026 by March 15. This applies to government offices at central and state levels.

March 17: TDS Certificates for January 2026

TDS certificates for tax deducted under Sections 194-IA (immovable property), 194-IB (rent by individuals), 194M (contractor/professional payments), and 194S (virtual digital assets) during January 2026 must be issued to deductees by March 17, 2026.

March 20: GSTR-3B for February 2026

The summary return GSTR-3B for February 2026, along with tax payment, is due by March 20 for monthly filers. GSTR-3B is the self-assessed return where businesses declare their output tax liability, claim input tax credit (ITC), and pay the net GST. For foreign-owned companies with significant inter-company transactions, ensure that reverse charge mechanism (RCM) obligations on services imported from the parent company are correctly captured.

Late Fee

Late filing attracts INR 50 per day (INR 25 CGST + INR 25 SGST) for returns with tax liability, and INR 20 per day for nil returns, plus 18% per annum interest on any outstanding tax amount.

March 28-30: Challan-cum-Statements for February 2026

Challan-cum-statements for TDS deducted under Sections 194-IA, 194-IB, 194M, and 194S during February 2026 are due by March 30, 2026. Form 26QB (property), Form 26QC (rent), Form 26QD (contractor/professional), and Form 26QE (virtual digital assets) must be filed with payment.

March 31: Financial Year Closes — The Year-End Checklist

March 31, 2026 is the close of FY 2025-26. This is not a single filing deadline but a hard cut-off for multiple compliance and strategic actions.

Tax-Saving Investments and Deductions

All investments eligible for deduction under Sections 80C (up to INR 1.5 lakh), 80D (health insurance), 80G (donations), and other provisions must be completed by March 31. For companies, the relevant deductions include Section 35 (R&D expenditure), Section 35AD (specified business deductions), and Section 80JJAA (new employment).

Country-by-Country Report (Form 3CEAD)

Indian constituent entities of international groups must file Form 3CEAD (Country-by-Country Report) by March 31, 2026, for the parent entity's accounting year ending in 2024-25. This applies when the group's consolidated revenue exceeds INR 5,500 crore and the parent entity is not obligated to file CbCR in its home country, or India does not have an exchange agreement with the parent's jurisdiction. Penalties for non-filing are severe: INR 5,000 per day for the first month, INR 15,000 per day for subsequent months, and INR 50,000 per day after the penalty order is served.

GST Reconciliation

Before the year closes, reconcile your GSTR-2B data (auto-populated from suppliers' GSTR-1) with your purchase records. Any pending Input Tax Credit must be identified now — ITC claims for FY 2026-27 invoices can only be made until the September 2026 GSTR-3B return (November 2026 for annual return filing). Reverse any ITC that does not match GSTR-2B.

FEMA Reconciliation for Foreign-Owned Companies

Verify that all FC-GPR filings are complete for any share allotments during FY 2025-26. Confirm that every outward remittance to the parent company (management fees, royalties, dividends, loan repayments) had proper Form 15CA/15CB certification. Check that the Entity Master Form on the RBI's FIRMS portal reflects the current shareholding pattern.

Board Meeting Compliance

Companies must hold a minimum of four board meetings per financial year, with no more than 120 days between consecutive meetings. Verify that the fourth board meeting of FY 2025-26 is scheduled before March 31. Board composition must include at least one resident director who has stayed in India for 182+ days during the financial year.

Transfer Pricing Documentation

Finalize contemporaneous transfer pricing documentation for all inter-company transactions. India requires documentation to be maintained by the specified date, not merely prepared at audit time. Common transactions requiring documentation include management fees, royalties, inter-company loans (ECBs), cost-sharing arrangements, and service agreements with the parent entity.

Statutory Records Update

Update all statutory registers — register of members, register of directors, register of charges, register of significant beneficial owners — to be current through March 31, 2026. These registers are inspectable by the Registrar of Companies and must reflect all changes during the financial year.

Regulatory Update: New Income Tax Act 2025 Takes Effect April 1, 2026

The most significant regulatory change for March 2026 is not a filing deadline but a transition. The Income Tax Act 2025, passed by Parliament to replace the 60-year-old Income Tax Act 1961, comes into force on April 1, 2026. Key changes that companies should prepare for before March 31 include:

• Tax Year replaces Financial Year/Assessment Year: The dual terminology is simplified to a single "Tax Year" concept starting April 1, 2026.
• Share buyback taxation: Amounts received from share buybacks will be taxed as capital gains rather than dividends, affecting exit planning for foreign investors.
• Extended ITR filing window: Non-audit taxpayers get until August 31 (extended from July 31) to file returns. Revised return window extends from 9 to 12 months.
• Simplified TCS rates: Many TCS categories move to a uniform 2% rate.

This is the last financial year under the 1961 Act. Ensure your tax team and statutory auditor are briefed on the transition implications. For a detailed analysis of income tax compliance obligations, see our article on 35 questions on Indian taxation for foreign companies.

Complete March 2026 Deadline Table

Special Considerations for Foreign-Owned Subsidiaries in March

Foreign-owned subsidiaries face several obligations in March that domestic companies do not encounter. Beyond the standard GST, TDS, and advance tax deadlines, these companies must address FEMA-specific year-end requirements that, if missed, create complications lasting well beyond March.

Inter-Company Transaction Reconciliation

Reconcile all inter-company balances with the parent entity before March 31. This includes outstanding management fees, royalty accruals, cost-sharing adjustments, and loan interest. Discrepancies between the Indian subsidiary's books and the parent's records will surface during the statutory audit and may trigger transfer pricing adjustments. For companies with transfer pricing exposure exceeding INR 1 crore in aggregate international transactions, Form 3CEB certification will be required by October 31, and contemporaneous documentation must be in place by March 31.

Dividend Distribution Planning

If the board is considering declaring a dividend to the foreign parent for FY 2026-27, March is the time to finalize the decision. Dividend distribution to non-resident shareholders attracts withholding tax — 20% under domestic law, reduced to 10-15% under most DTAAs. The dividend must be declared before March 31 for it to be charged against the current year's profits. Ensure that the withholding tax rate, Form 15CA/15CB certification, and remittance logistics are planned before the AGM (due by September 30).

Statutory Audit Preparation

While the statutory audit itself occurs after March 31, the preparation must begin in March. Provide the auditor with access to all books of accounts, bank statements, inter-company agreements, and FEMA documentation. Companies that delay audit preparation until April-May often face compressed timelines for the tax audit report (October 31), transfer pricing report (October 31), and income tax return (November 30).

Action Plan for Foreign-Owned Companies

Given the density of March deadlines, here is a prioritized action plan for foreign-owned subsidiaries:

1. Week 1 (March 1-7): Deposit TDS/TCS for February. File any pending challan-cum-statements. Review advance tax position and calculate the final installment.
2. Week 2 (March 8-15): File GSTR-1. Pay the 4th advance tax installment. Deposit PF and ESI. Hold the 4th board meeting if not yet scheduled.
3. Week 3 (March 16-22): File GSTR-3B. Issue TDS certificates. Begin year-end reconciliation of inter-company accounts.
4. Week 4 (March 23-31): File challan-cum-statements for February TDS. Complete FEMA reconciliation. Finalize transfer pricing documentation. Update statutory registers. File Form 3CEAD if applicable. Close the books.

For ongoing compliance support, explore our annual compliance service for Indian subsidiaries. Companies evaluating India market entry can find setup guidance in our foreign subsidiary registration service.

Key Takeaways

• March 15 is the single most critical deadline — the 4th advance tax installment (100% of estimated liability), PF, and ESI deposits all converge on this date, with interest penalties starting immediately for shortfalls.
• March 31 is a hard cut-off for tax-saving investments and deductions — Section 80C, 80D, and corporate deductions under Sections 35, 35AD, and 80JJAA must be completed before this date to be claimed in FY 2025-26.
• FEMA reconciliation before year-end is essential — verify all FC-GPR filings, Form 15CA/15CB certifications, and Entity Master Form updates are current, as discrepancies discovered during audit create compounding proceedings risk.
• The new Income Tax Act 2025 takes effect April 1, 2026 — March is the last month under the 1961 Act, requiring advance preparation for the transition to new section numbers, the unified "Tax Year" concept, and revised buyback taxation rules.
• Year-end transfer pricing documentation cannot wait for audit — India requires contemporaneous documentation, meaning the analysis and benchmarking must be ready by March 31, not prepared retroactively when the auditor requests it.