Income Tax Returns under the Income-tax Act, 2025: Tax Year, Regimes and Revised Due Dates
The Income-tax Act, 2025 came into force on 1 April 2026. It replaced the Income-tax Act, 1961, which had been in force for over six decades. For most taxpayers the tax rates and the basic structure of income are unchanged. The language, the section numbers and some procedures have changed.
"Tax year" replaces previous year and assessment year
Under the 1961 Act, income earned in the previous year (for example FY 2025-26) was assessed in the assessment year (AY 2026-27). The new Act uses a single term, tax year, meaning the financial year in which the income is earned.
- Income earned from April 2026 to March 2027 is tax year 2026-27.
- The return for tax year 2026-27 will be filed in 2027.
Returns for FY 2025-26 (AY 2026-27), filed during 2026, are governed by the 1961 Act, and so are any assessments relating to that year and earlier years.
Section numbers you will see more often
| Provision | 1961 Act | 2025 Act |
|---|---|---|
| Tax audit | Section 44AB | Section 63 |
| Deduction for specified investments (PPF, ELSS, life insurance etc.) | Section 80C | Section 123 |
| TDS provisions | Sections 192–194T (many) | Section 393 (consolidated table) |
When reading notices and departmental communications, check which Act they refer to.
Choosing the regime
The new regime is the default. Its key features:
- standard deduction of ₹75,000 for salaried individuals and pensioners
- no tax on taxable income up to ₹12 lakh, through the rebate for resident individuals
- lower slab rates, but without most deductions and exemptions
The old regime keeps deductions such as HRA, the ₹1.5 lakh investment deduction, health insurance and home loan interest on a self-occupied house.
- Salaried individuals without business income can choose each year.
- Individuals with business or professional income who opt out of the new regime can switch back only once.
Compute both before deciding. For many taxpayers with modest deductions, the new regime is now cheaper.
Due dates after the Budget 2026 changes
| Taxpayer | Due date |
|---|---|
| Individuals and HUFs filing ITR-1 / ITR-2 (no business income) | 31 July |
| Non-audit business and professional cases, and trusts | 31 August |
| Audit cases (non-transfer pricing) | 31 October |
| Transfer pricing cases | 30 November |
The window for revising a return has also been extended to 31 March following the end of the tax year, with a fee where it is used late. Check the specific year to which each change applies.
An updated return (ITR-U) can be filed within 48 months from the end of the relevant assessment year to report missed income, on payment of additional tax of 25% to 70% of the tax and interest, depending on the delay.
Before you file
- Download the AIS and TIS and match every entry: interest, dividends, securities transactions, property purchases and sales, and foreign remittances.
- Report capital gains carefully. Rates and holding periods for listed shares, mutual funds and property were changed by the Finance (No. 2) Act, 2024 from 23 July 2024.
- Disclose foreign assets if you are a resident and hold any. Non-disclosure attracts penalties under the Black Money Act.
- E-verify within 30 days of filing. A return that is not verified is treated as not filed.
The information in this article reflects the law as on the date of publication and is for general guidance only.