What this means
The Income-tax Act, 2025 is now the operative framework for income arising from 1 April 2026. The most visible change for many taxpayers is terminology: the new law uses “Tax Year” rather than the previous-year/assessment-year pair for income earned from FY 2026-27 onwards. That change is intended to reduce confusion, but it does not mean every old-year filing instantly moved to the new framework.
Practical points
A practical transition point is essential. Dues and filings relating to income up to FY 2025-26 can still involve the Income-tax Act, 1961, while events occurring from 1 April 2026 can fall under the 2025 Act. Businesses should therefore tag ledgers, withholding events, notices and forms by the period to which they relate before applying a section number or form.
Control and documentation
The e-Filing portal now provides separate guidance and form mapping for the two frameworks. Teams should update internal checklists, tax workpapers and software references rather than simply replacing old section numbers manually. Where a form has been renumbered, use the Department’s mapping guide and verify the relevant event date.
Before you act
For management, the transition is also a documentation issue: retain copies of the law/reference used, the period considered, the computation basis and any advice obtained. This makes future review easier when the same client may have matters under both Acts during the transition period.
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.