KAR SATHI · VISUAL GUIDE
The Income-tax Act, 2025 came into effect on 1 April 2026, replacing the Income-tax Act, 1961. However, this does not mean that every return, notice.
01 · FROM THE GUIDE
Income-tax Act 2025 Transition: AY 2026-27 and Tax Year 2026-27 Explained
The Income-tax Act, 2025 came into effect on 1 April 2026, replacing the Income-tax Act, 1961. However, this does not mean that every return, notice, correction or tax.
02 · FROM THE GUIDE
Particular | AY 2026-27 | Tax Year 2026-27
Income period | 1 April 2025 to 31 March 2026 | 1 April 2026 to 31 March 2027
03 · FROM THE GUIDE
The Income-tax Act, 1961 was repealed with effect from 1 April 2026 and replaced by the Income-tax Act, 2025.
The new Act simplifies the structure and language of the law. One of the most visible changes is the replacement of the terms “Previous Year” and “Assessment Year” with a.
04 · FROM THE GUIDE
Income earned between 1 April 2026 and 31 March 2027 belongs to Tax Year 2026-27.
The return for that Tax Year will be filed after 31 March 2027.
05 · FROM THE GUIDE
AY 2026-27 relates to income earned during FY 2025-26, from 1 April 2025 to 31 March 2026.
Because the income period began before the new Act came into force, it continues to be governed by the Income-tax Act, 1961.
06 · FROM THE GUIDE
Use the ITR forms prescribed under the old Act;
Select AY 2026-27 on the e-Filing portal;
07 · FROM THE GUIDE
TY 2026-27 covers income earned from 1 April 2026 to 31 March 2027.
It is governed by the Income-tax Act, 2025. During this period, taxpayers and businesses must use the new provisions for matters such as:
08 · FROM THE GUIDE
Filing an ITR for AY 2026-27 under the old Act; and
Paying advance tax or receiving salary subject to TDS for TY 2026-27 under the new Act.
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