As the financial year 2025–26 comes to a close, the Central Board of Direct Taxes (CBDT) has directed all Income-Tax offices across India to remain operational on Tuesday to ensure the completion of pending official work.
The decision comes despite the day coinciding with Mahavir Jayanti, a public holiday observed in many parts of the country. The directive has been issued under Section 119 of the Income Tax Act, 1961, which empowers the CBDT to provide administrative instructions for efficient tax administration.
March 31 marks the close of the financial year 2025–26, making it a crucial deadline for several tax-related activities, including advance tax payments and tax-saving investments.
Tax offices witness a surge in workload during this period, often requiring extended working hours—even on holidays—to meet deadlines.
This year carries added importance as India prepares to transition to a new income tax framework from April 1, increasing the urgency to clear pending processes before the new system comes into effect.
From April 1, India is set to transition to a new tax regime with the implementation of the Income Tax Act, 2025, replacing the long-standing existing framework.
The new legislation is designed to simplify complex provisions, minimise legal ambiguities, and make tax compliance more accessible for the general public.
For taxpayers, however, the directive does not alter the holiday status. Banks are expected to remain closed in accordance with the Reserve Bank of India’s holiday calendar, and regular financial transactions may be limited.
Individuals are therefore advised to complete essential financial activities—such as investments in PPF, NPS, and insurance payments—before the deadline to avoid last-minute issues.
The end of March has witnessed an extended stretch of holidays across multiple states due to festivals and routine weekly closures, including Ram Navami, the fourth Saturday, Sunday, and Mahavir Jayanti on March 31.
Bank holidays are declared under the provisions of the Negotiable Instruments Act, which regulates transactions such as cheques and promissory notes. As a result, these services remain unavailable on designated holidays.
Since holiday schedules vary from state to state, customers are advised to verify timings with their local bank branches in advance to avoid inconvenience and plan their transactions effectively during the extended break.
