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Income Tax Act 2025 Key Changes
Tax Year, new section numbers and transition rules

The most important accuracy point is timing: FY 2025-26/AY 2026-27 remains under the 1961 Act, while Tax Year 2026-27 income is governed by the 2025 Act framework.

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Last fact-checked: 2026-05-26
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Fact-check notes

Last fact-checked: 2026-05-26

Transition rule: AY 2026-27 covers FY 2025-26 and continues under the Income-tax Act, 1961. The Income-tax Act 2025 Tax Year terminology applies for income earned from 1 April 2026 onward.

This page is written from official portal guidance and the supplied Batch 11 brief. Any future-dated form, rule or portal workflow should be verified in the active utility before filing or advising a client.

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What this covers

The most important accuracy point is timing: FY 2025-26/AY 2026-27 remains under the 1961 Act, while Tax Year 2026-27 income is governed by the 2025 Act framework.

  • Tax Year replaces the old Previous Year wording from income earned during FY 2026-27 onward.
  • New Act section numbers reorganise familiar deductions and exemptions.
  • Portal forms and utilities remain the final filing authority.
Use cases

Who this is for

  • Taxpayer reading new Act headlines.
  • CA updating client notes.
  • Payroll team preparing FY 2026-27 communication.
  • Business mapping old-to-new references.
Records

Documents and data to verify

  • Official portal FAQ.
  • Applicable return utility.
  • Old and new section mapping.
  • Client income year.
Care points

Common mistakes to avoid

  • Using new Act labels for AY 2026-27 return.
  • Assuming every old provision changed substantively.
  • Ignoring portal instructions.
  • Relying on social posts without source.
Action

How to proceed

  • Confirm the applicable year, taxpayer type, state, registration status and portal form before acting.
  • Reconcile the official portal data with books, bank statements, certificates, invoices and notices.
  • Prepare a written computation, filing note, document checklist or response with assumptions clearly stated.
  • Download acknowledgements, challans, workings and evidence after filing or submission.
Questions people ask

FAQs

Can WorkIndex help with this?

Yes. Post the facts and documents; relevant experts can quote for filing, advisory, reconciliation, registration, appeal support or ongoing compliance.

Is the page a substitute for professional advice?

No. Use it to prepare. A professional should check the current portal utility, official source and records before filing or taking a tax position.

What should I mention while posting?

Mention the year, state, form, deadline, amount involved, documents available, portal status and whether you need filing, correction, opinion or representation.

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