Income Tax Guide — Tax Year 2026-27
Updated June 2026 · VerifiedExplore Our Income Tax Resources
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What Has Changed Under the Income-tax Act, 2025?
The Income-tax Act, 2025 replaces the six-decade-old IT Act, 1961. Key changes include:
- Terminology: “Assessment Year” and “Financial Year” are unified into “Tax Year.”
- Section renumbering: TDS on salary moved from Section 192 to Section 392; Section 194-series is now Section 393; Section 206C (TCS) is now Section 394.
- New regime as default: The new tax regime with lower rates is the default; taxpayers must actively opt for the old regime.
- Forms updated: Form 24Q is now Form 138; Form 26Q is now Form 140.
- Simplified structure: Reduced chapters, consolidated exemption lists, and rationalised provisions.
Who Must File an Income Tax Return?
You must file an ITR if:
- Your gross total income exceeds the basic exemption limit (₹4 lakh under new regime, ₹2.5 lakh under old regime).
- You want to claim a refund of excess TDS deducted.
- You have foreign assets or income from abroad.
- You deposited more than ₹1 crore in a bank account during the year.
- You incurred electricity expenditure exceeding ₹1 lakh.
- You spent more than ₹2 lakh on foreign travel.
Frequently Asked Questions
What is the due date for filing ITR for Tax Year 2026-27?
For salaried individuals and non-audit cases, the due date is 31 July 2027. For taxpayers subject to tax audit, it is 31 October 2027. For transfer pricing cases, it is 30 November 2027.
What is the difference between Tax Year and Assessment Year?
Under the Income-tax Act, 2025, the terms “Financial Year” and “Assessment Year” are replaced by “Tax Year.” Tax Year 2026-27 covers the period from 1 April 2026 to 31 March 2027 — the year in which income is earned and tax return is filed.
Is the Income-tax Act, 1961 still valid?
No. The Income-tax Act, 1961 was repealed effective 01-Apr-2026. It is replaced by the Income-tax Act, 2025. All provisions, section numbers, and form references have been updated under the new Act.
Can I file ITR without Form 16?
Yes. You can file ITR using salary slips, bank statements, AIS (Annual Information Statement), and Form 26AS to gather your income and TDS details. Form 16 is helpful but not mandatory.
What is the penalty for not filing ITR on time?
A late filing fee of ₹5,000 applies if filed after the due date but before 31 December (₹1,000 if income is below ₹5 lakh). Interest under Section 234A/234B/234C also applies on unpaid tax.
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