In this article
The Income-tax Act, 2025 replaces the Income-tax Act, 1961 with effect from 1 April 2026. The Income-tax Rules, 2026 were notified by the CBDT on 20 March 2026.
Key points
- The concept of "previous year / assessment year" is replaced by a single "tax year".
- The Act applies from tax year 2026-27. Matters for earlier years (including notices and appeals) continue under the 1961 Act.
- Sections have been re-organised and re-numbered; many forms and rules were refreshed.
- Rate structure for individuals for FY 2026-27 was reported to be unchanged by Budget 2026.
What you should do now
- Continue filing FY 2025-26 (AY 2026-27) returns under the 1961 Act.
- Update payroll and TDS processes for new forms and section numbers.
- Check mapping tables for common provisions you rely on (HRA, 80C equivalents, TDS sections).
Read the official Act and rules on incometaxindia.gov.in. See also our GST & tax news page.
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General information only; not professional advice. Rates, limits and due dates change. Verify with official sources or consult a professional. Reviewed October 2026. See our editorial policy.
