Year-End Compliance Checklist (March Deadlines)

Why March Is the Most Critical Month for Compliance in India

India's financial year runs from April 1 to March 31. This means March is not just the end of a quarter — it is the close of the entire fiscal year. Every tax calculation, every statutory filing, and every regulatory obligation converges into this single 31-day window. For foreign-owned companies operating in India through a wholly owned subsidiary, branch office, or liaison office, the stakes are particularly high.

Missing a March deadline does not simply mean a late fee. It can trigger interest under Sections 234B and 234C of the Income Tax Act, GST credit reversals that inflate your cost base, director disqualification proceedings under the Companies Act, and FEMA penalty notices from the RBI. In the worst case, compounding these failures across multiple compliance domains can result in regulatory scrutiny that delays future investment rounds, dividend repatriation, or even exit transactions.

This checklist is organized by compliance domain and ordered by deadline date, so your India finance team — or your compliance partner — can work through it systematically.

Advance Tax: Final Instalment by March 15

The fourth and final instalment of advance tax for FY 2025-26 (AY 2026-27) is due on March 15, 2026. By this date, the company must have paid 100% of its estimated tax liability for the full year.

What Counts as Your Tax Liability

For a foreign-owned Indian subsidiary structured as a Private Limited Company, the corporate tax rate under the new regime (Section 115BAA) is 22%, plus a 10% surcharge and 4% health and education cess, resulting in an effective rate of approximately 25.17%. If your company has not opted for Section 115BAA and operates under the old regime, the base rate is 30% (25% if turnover was below INR 400 crore in FY 2023-24).

For foreign companies that are taxed directly — for example, through a permanent establishment — the base rate is 35% with surcharge of 2% (income INR 1-10 crore) or 5% (income above INR 10 crore), plus 4% cess.

Advance Tax Instalment Schedule Recap

Penalties for Shortfall

If the total advance tax paid by March 15 falls short of 90% of the assessed tax liability, interest under Section 234B applies at 1% per month on the shortfall amount, calculated from April 1 until the date of actual payment. Additionally, interest under Section 234C applies at 1% per month for each quarter where the cumulative payment fell below the prescribed percentage.

For a company with a tax liability of INR 1 crore, a 10% shortfall left unpaid until the return filing date in October would result in approximately INR 7 lakh in interest — a cost that is entirely avoidable with proper estimation.

Read our detailed guide on advance tax deadlines and calculation for foreign-owned companies.

TDS and TCS: Deposits and Certificates

Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) obligations do not pause for year-end. March has multiple overlapping deadlines.

Key TDS Deadlines in March

Cross-Border Payments: Section 195 and Forms 15CA/15CB

If your Indian entity is making payments to its foreign parent, affiliates, or any non-resident — whether for management fees, transfer pricing adjustments, royalties, or technical service fees — Section 195 requires TDS at the applicable rate before remittance.

Every such remittance exceeding INR 5 lakh in aggregate during the financial year requires Form 15CA (submitted by the remitter) and Form 15CB (a certificate from a Chartered Accountant). Failure to file these forms before remittance attracts a penalty of INR 1 lakh under Section 271I.

For detailed guidance, see our article on TDS and withholding tax on foreign payments.

GST: Year-End Reconciliation and Filings

March is the final month to correct GST mismatches for FY 2025-26. Once the financial year closes, many correction windows narrow or shut entirely.

Regular Monthly Filings

• GSTR-7 and GSTR-8: Due March 10, 2026 (for February transactions)
• GSTR-1: Due March 11, 2026 (monthly filers) or March 13 (QRMP quarterly filers via IFF)
• GSTR-6: Due March 13, 2026
• GSTR-3B: Due March 20, 2026 (monthly filers)
• PMT-06: Due March 25, 2026 (QRMP taxpayers)
• GSTR-11: Due March 28, 2026

Critical Year-End GST Actions by March 31

• ITC Reconciliation: Reconcile Input Tax Credit claimed in GSTR-3B against GSTR-2B auto-populated data. Any mismatch must be corrected in the March return. Under Rule 37A, ITC must be reversed if the supplier has not filed their GSTR-3B by September 30 of the following year.
• ITC Reversal for Exempt Supplies: Companies making both taxable and exempt supplies must compute and reverse proportional ITC under Rules 42 and 43 of the CGST Rules.
• LUT Renewal (Form RFD-11): If your company exports goods or services without payment of IGST, the Letter of Undertaking must be renewed by March 31 for the next financial year.
• Composition Scheme Election (CMP-02): Due March 31 for businesses opting into the composition scheme for FY 2026-27.

For a comprehensive GST guide, read 40 questions about GST for foreign companies.

ROC and Companies Act Compliance

While the major annual ROC filings — AOC-4 and MGT-7 — are due after the AGM (typically September-November), March has its own set of corporate law obligations.

Board Meeting Requirement

The Companies Act requires a minimum of four board meetings per year, with no more than 120 days between consecutive meetings. If your last board meeting was held in December 2025, the next one must be held by late March 2026 at the latest. Failure to hold the required number of board meetings can attract a penalty of INR 25,000 on every officer in default.

Director Compliance

• DIN Status: Verify that all directors' DINs are active. If any director failed to file DIR-3 KYC by September 30, 2025, their DIN would have been deactivated, and they cannot sign filings until it is reactivated (with a penalty of INR 5,000).
• Resident Director: Every Indian company must have at least one director who has stayed in India for a total period of 182 days or more in the financial year. Confirm this before year-end.

Key ROC Forms Due Around Year-End

• MSME-1: If your company has outstanding payments to Micro and Small Enterprise suppliers exceeding 45 days, Form MSME-1 must be filed within 30 days of the half-year end (i.e., by April 30 for the October-March half).
• DPT-3: Return of deposits and transactions not considered as deposits — due by June 30 for the year ending March 31.

FEMA and RBI Compliance for Foreign-Invested Companies

Companies with foreign direct investment face additional year-end obligations under the Foreign Exchange Management Act.

ECB-2 Monthly Return

If your company has raised External Commercial Borrowings, the monthly ECB-2 return for February 2026 must be filed with the RBI by March 10, 2026. These returns are filed through the authorized dealer bank.

FLA Return Preparation

While the Annual Return on Foreign Liabilities and Assets (FLA) is not due until July 15, 2026, March 31 is the date as at which all data must be captured. Start compiling your foreign equity, foreign debt, and overseas asset positions now.

FC-GPR and Downstream Investment Reporting

If any shares were allotted to foreign investors during FY 2025-26, confirm that all FC-GPR filings were made within 30 days of each allotment. Year-end is the time to audit your FEMA filings register and identify any gaps before the RBI's annual review cycle begins.

Read our complete guide to annual FEMA reporting for all deadlines.

Payroll and Labour Law Compliance

For companies with employees in India, several payroll-related deadlines fall in March.

Provident Fund and ESI

• PF Contribution: February 2026 contributions due by March 15, 2026. Late payment attracts interest at 12% per annum and damages up to 100% of arrears.
• ESI Contribution: February 2026 contributions also due by March 15, 2026.
• PF Annual Return: The annual PF return is due by April 30, but data preparation should begin in March.

Professional Tax

Professional tax deadlines vary by state. In Maharashtra, the monthly payment for February is due by March 31. In Karnataka, it is due by the 20th of the following month. Confirm your state-specific deadline.

Investment Declaration and Proof Collection

If your company processes payroll with tax-saving declarations under the old regime, March is the deadline for employees to submit investment proofs. The payroll team must recalculate TDS for the March salary based on actual investments versus declared investments.

Transfer Pricing: Year-End Documentation

Companies with international transactions — which includes virtually every foreign-owned subsidiary — must maintain transfer pricing documentation under Section 92D of the Income Tax Act.

What to Finalize by March 31

• Benchmarking Study: Ensure the transfer pricing study for FY 2025-26 covers all international transactions. If your company pays management fees, royalties, or receives intercompany loans, each must be benchmarked against arm's length standards.
• Country-by-Country Report (CbCR): For groups with consolidated revenue exceeding INR 6,400 crore (approximately EUR 750 million), Form 3CEAD must be filed by March 31, 2026 for FY 2024-25.
• Master File and Local File: While these are due at the return filing date, data collection must happen during the financial year.

Read our detailed article on annual transfer pricing documentation requirements.

Books of Accounts and Statutory Audit Preparation

March 31 is the date as at which your balance sheet, profit and loss account, and cash flow statement are prepared. Getting the books right now saves significant pain later.

Year-End Closing Checklist

• Bank Reconciliation: Reconcile all bank accounts as of March 31. Flag any unreconciled items older than 90 days.
• Fixed Asset Register: Update the fixed asset register with all additions, disposals, and depreciation for the year. The depreciation rates under the Companies Act (Schedule II) differ from the Income Tax Act (Section 32), so maintain both schedules.
• Provisions and Accruals: Accrue all expenses incurred but not yet billed as of March 31 — including professional fees, utility bills, and intercompany charges.
• Foreign Currency Transactions: Restate all foreign currency monetary items at the RBI reference rate as of March 31. Exchange differences go to the profit and loss account under AS/Ind AS.
• Related Party Disclosures: Compile the list of all related party transactions for the year. This feeds into the statutory audit, transfer pricing documentation, and AOC-2 filing.

Appointing or Confirming the Statutory Auditor

If your statutory auditor's term ends at the upcoming AGM, begin the process of identifying and appointing a replacement. The auditor must be confirmed at the AGM, but board approval and consent letters should be in place before the audit begins.

Income Tax Returns: Preparation Timeline

While income tax returns are not due until October 31 (for companies requiring a tax audit), March is when you lock in the numbers.

Key Preparation Steps in March

• Updated Return Filing: The deadline to file an updated return (ITR-U) for FY 2023-24 (AY 2024-25) is March 31, 2026, with an additional tax of 50% on the amount payable. This is the last chance to correct any errors in the return filed two years ago.
• Form 67: If your company is claiming foreign tax credit under Section 90/91 for taxes paid abroad, Form 67 must be filed by March 31 of the relevant assessment year.
• Claim Deductions: Any investments or expenditures required to claim deductions (such as under Section 35 for scientific research) must be made on or before March 31.

Consolidated March Deadline Calendar

Common Mistakes Foreign Companies Make at Year-End

• Underestimating advance tax: Many subsidiaries estimate tax liability based on the previous year without adjusting for current-year growth, intercompany pricing changes, or one-time gains. The 1% per month interest compounds quickly.
• Ignoring ITC reconciliation: GST credits that do not match GSTR-2B data will be reversed. If your vendors have not filed their returns, your ITC is at risk.
• Late intercompany invoicing: If your parent company sends management fee or royalty invoices after March 31, the Indian subsidiary cannot accrue the expense for FY 2025-26, distorting both the P&L and transfer pricing documentation.
• Missing the Form 15CA/15CB deadline: Payments made to non-residents without prior filing of these forms attract a flat INR 1 lakh penalty per transaction.
• Not renewing the LUT: Forgetting to renew the Letter of Undertaking means your company must pay IGST on exports and claim a refund — tying up working capital for months.

Key Takeaways

• March 15 is the single most critical date: advance tax (100% of liability), PF/ESI contributions, and Form 3BB all converge.
• GST filings span the entire month (March 10 through March 31), with the LUT renewal being the most commonly missed deadline for exporters.
• Year-end books closure on March 31 determines the numbers for your statutory audit, tax audit, transfer pricing study, and FEMA filings for the rest of the year.
• Cross-border payments require Form 15CA/15CB compliance; non-filing carries a INR 1 lakh penalty per instance.
• Start the compliance calendar review in the first week of March — not the last week — to give your team enough runway to address any gaps.