As 2025 draws to a close, proactive financial planning ensures optimal tax efficiency, portfolio health, and readiness for the new year. For businesses and individuals served by accounting firms, this checklist outlines essential steps grounded in current regulations and best practices. Implementing these moves leverages deductions, minimizes liabilities, and positions you for 2026 growth.

Review Tax Obligations

Complete income tax returns by the deadlines set by the Income Tax Department, typically July 31 for individuals and October 31 for audited accounts. Verify eligibility for deductions under sections like 80C for investments in PPF, ELSS, or insurance premiums, which cap at Rs 1.5 lakh annually. Businesses should reconcile TDS payments and claim input tax credits under GST to avoid penalties.

• File provisional assessments if estimates change.
• Donate to approved charities for 80G benefits before December 31.
• Harvest capital losses to offset gains, reducing taxable income.​

Optimize Investment Portfolio

Rebalance assets to maintain desired risk levels, selling overperforming stocks and buying undervalued ones. Max out retirement contributions to NPS or EPF, where employer matches amplify returns. Consider mid and small cap funds, which outperformed large caps in 2024 due to economic recovery, but diversify to mitigate volatility.

Key actions include:

• Locking in long-term capital gains tax at 12.5 percent for equities held over a year.
• Shifting to tax-efficient instruments like sovereign gold bonds.
• Auditing mutual fund SIPs for alignment with goals.​
  

Manage Debt and Expenses

Pay off high-interest loans, prioritizing credit card balances above 18 percent APR. Prepay home or vehicle loans to claim principal deductions under section 80C. Track business expenses for allowability, ensuring invoices support claims for depreciation on assets like machinery.

• Consolidate debts into lower-rate options.
• Freeze unnecessary subscriptions and negotiate vendor terms.
• Build a three to six month emergency fund in liquid savings.​

Plan for Business Compliance

Chennai-based enterprises should update statutory audits, finalize balance sheets, and comply with Companies Act filings. Renew professional tax registrations and evaluate ESOP schemes for employee retention. Suri & Co’s expertise in audit, tax advisory, and risk management supports seamless compliance across sectors like automobiles and energy.​

Essential steps:

• Conduct internal audits for financial controls.
• Review transfer pricing for inter-company transactions.
• Secure advance rulings on complex tax issues.

Estate and Insurance Checkup

Update wills, nominations on investments, and insurance policies to reflect life changes. Increase health and term covers amid rising premiums, targeting 10 times annual income for life insurance. Gift assets strategically to family under exemption limits of Rs 50,000 per person annually.

Final Tip: Engage a chartered accountant for personalized advice. Suri & Co, with 85 years of service since 1939, offers tailored solutions from its Chennai base, ensuring integrity and precision.