The changes introduced under the Indian Government’s Income Tax Act, 2025, have raised several practical considerations, particularly regarding the assessment year and tax year distinction, amended returns, late filing, and updated return provisions. Here is a concise summary of the key guidelines for filing ITR for FY 2025-26 (AY 2026-27).
Explanation of Income Tax Return (ITR) Filing Rules for 2026
Explanation of the Difference Between AY 2026-27 and TY 2026-27
Assessment Year (AY) 2026-27 refers to the period in which income earned during the financial year 2025-26 is assessed and filed under the Income Tax Act, 1961.
On the other hand, Tax Year (TY) 2026-27 refers to the income earned during the financial year 2026-27, as per the provisions of the new Income Tax Act, 2025, applicable to taxpayers under the revised framework.
Both Are Separate Filing Obligations on the E-Filing Portal
Which Law Applies to Taxpayers for Income Earned in FY 2025-26?
Understand how income earned during FY 2025-26 will be assessed under the Income Tax Act, 1961, for AY 2026-27. Even if taxpayers file their returns after 1 April 2026, the provisions of the old law will continue to apply for this period.
What Do You Need to Know to Revise Your ITR for AY 2026-27?
Yes, a revised return for AY 2026-27 can be filed under Section 139(5) of the Income Tax Act, 1961. It must be submitted before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.
Last Date for Filing a Belated Return Explained
A belated return for AY 2026-27 can be filed up to 31 December 2026 u/s 139(4) of the IT Act, 1961. However, late filing fees will be applicable based on the taxpayer’s total income.
Understanding More About the Updated Return (ITR-U)
An updated return enables taxpayers to rectify errors or disclose additional income even after filing the original return. It can be submitted under Section 139(8A) within the prescribed time limits; however, it carries an additional tax liability and is subject to specified conditions and restrictions.
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The Income Tax Act, 2025, largely retains existing filing provisions while making the distinction between the assessment year and the tax year clearer. To avoid errors and penalties, taxpayers should carefully verify the applicable year and filing deadlines when submitting their returns.