What this means
The shift to the term “Tax Year” applies to income earned from 1 April 2026 onwards. This means Tax Year 2026-27 relates to income earned during the financial year beginning 1 April 2026. Older income periods continue to be identified under the familiar previous-year and assessment-year framework where the repealed law remains relevant.
Practical points
This distinction matters when reading due dates, utilities and notices. For example, an ITR utility labelled AY 2026-27 concerns income from FY 2025-26. By contrast, a withholding event occurring in August 2026 is an event in Tax Year 2026-27 and should be examined under the new law and the Income-tax Rules, 2026.
Control and documentation
A useful office practice is to place the period prominently on every tax workpaper. Do not rely only on the date the task is performed. A return prepared in August 2026 may relate to FY 2025-26, while a TDS transaction recorded the same day may relate to Tax Year 2026-27.
Before you act
When an official portal page uses both old and new terminology, follow the Department’s current guidance and the specific law/form applicable to that transaction.
Sources
This article is general educational information as at the review date shown above. It is not a substitute for the legislation, notification, circular or advice applicable to a particular person or transaction. Verify the current official source before acting.