India Tax Calendar March 2026: Guide to Advance Tax, Transfer Pricing, and FTC Filing

As Financial Year (FY) 2025-26 approaches closure, March 2026 represents one of the most compliance-intensive periods under India’s direct tax framework. Businesses, multinational enterprises, employers, and individual taxpayers must closely monitor multiple filing and payment obligations to mitigate interest exposure, penalties, and reporting risks.

All compliance requirements outlined below are governed by the currently operative Income Tax Act, 1961, and applicable rules and notifications in force. While the Income Tax Act, 2025, and Income Tax Rules, 2026, effective April 1, 2026, aim to modernize India’s direct tax regime, they have not yet been operationalized for FY 2025-26 or Assessment Year (AY) 2026-27 compliance obligations.

Upcoming tax obligations and compliance actions

1. Advance tax obligations—final installment

The fourth and final installment of advance tax for AY 2026-27 is due in March 2026. This is applicable to the following:

1. Companies and Limited Liability Partnerships (LLPs)
2. Professionals and business taxpayers with taxable income
3. Individuals earning non-salary income exceeding advance tax thresholds

Failure to pay adequate advance tax may trigger interest liabilities under Sections 234B and 234C.

Under the final installment, taxpayers must discharge 100 percent of their advance tax liability by March 15, 2026, instead of quarterly payments.

2. TDS compliance and reporting requirements

March 2026 also includes several tax deducted at source (TDS) obligations linked to earlier transactions.

a) Challan-cum-statement filings

These filings combine tax payment and reporting requirements, making timely submission critical.

b) Issuance of TDS certificates

Certificates must be issued for deductions made in January 2026 under:

1. Section 194-IA—Property transactions
2. Section 194-IB—Rent payments
3. Section 194M—Contractor/professional payments
4. Section 194S—Specified virtual digital asset transactions

These income tax sections use TDS certificate forms 16B/16C/16D/16E, which are generated through the TRACES portal.

3. Transfer pricing reporting: Country-by-Country (CbC) compliance

CbC reporting applies to multinational enterprise (MNE) groups meeting prescribed revenue thresholds under the Income Tax Act, 1961. In India, the tax filing obligation may arise for:

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1. Indian parent entities of an MNE group;
2. Alternate reporting entities (AREs) designated to file the report on behalf of the group; and
3. Indian constituent entities, in cases where:

• the foreign parent entity is not required to file a CbC report in its home jurisdiction; or
• India does not have an effective information-exchange arrangement with the parent entity’s jurisdiction for automatic sharing of CbC reports.

4. Foreign Tax Credit (FTC) compliance—Form 67

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Taxpayers claiming an FTC must upload Form 67, a mandatory statement, for FY 2024–25 where the income tax return has already been filed within prescribed timelines. This is particularly relevant for:

1. Expatriates
2. Globally mobile employees
3. Cross-border service providers
4. Companies earning overseas income

Failure to file Form 67 may jeopardize eligibility for FTC claims.

5. Updated return filing opportunity

Eligible taxpayers may file an updated return for AY 2021-22 under Section 139(8A).

This enables taxpayers to:

1. Correct underreported income,
2. Regularize prior non-disclosures, or
3. Mitigate potential litigation risks.

Additional tax liabilities apply under the updated return mechanism.

Source: Tax Calendar, Income Tax Department, GoI.

Key business takeaways

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• March 15 remains the most critical deadline for advance tax compliance.
• Finance and payroll teams must coordinate closely to manage TDS reporting and certificate issuance.
• Multinational enterprises should prioritize transfer pricing and CbC reporting readiness.
• Cross-border taxpayers must ensure timely Form 67 submission to preserve foreign tax credit eligibility.
• The updated return window provides a final opportunity to regularize past filings.

CLICK HERE: Corporate Tax Compliance for Foreign Companies in India: A Practical Roadmap for 2026

Advisory perspective for tax obligations

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With multiple overlapping obligations, organizations should conduct a year-end tax health review covering advance tax estimates, TDS reconciliation, and international reporting requirements. Early compliance reduces penalty exposure and supports smoother financial year closure.

For upcoming tax filing obligations, taxpayers should continue aligning compliance processes with the Income Tax Act, 1961 framework, while awaiting implementation of the Income Tax Act, 2025, and related rules from April 1, 2026.

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