Educational article

Income-tax Act, 2025: AY 2026–27 vs Tax Year 2026–27

By CA. Narendra Vasavan R

Published October 13, 2026 · Modified October 13, 2026

Check the relevant period and current official sources. A publication date is not confirmation that the content is current.

In brief: AY 2026–27 and Tax Year 2026–27 refer to different income periods. The new Income-tax Act, 2025 came into force on 1 April 2026, but the date on which you file or pay does not by itself determine which Act applies.

This article explains an already-effective transition. It is not an announcement issued today or a filing-deadline extension.

What changed, and when?

The Ministry of Finance’s PIB release dated 1 April 2026 confirmed commencement of the Income-tax Act, 2025 on that date. The Department’s transition FAQs explain the new “Tax Year” terminology and the continuing application of the old law to earlier periods.

Which period does your return concern?

The Income Tax Department’s objective-and-scope FAQs explain that returns for AY 2026–27 concern the period governed by the old Act. The new terminology applies to income earned during FY 2026–27 onwards.

Accordingly, do not relabel FY 2025–26 income as Tax Year 2026–27 merely because the return is submitted after 1 April 2026. Earlier-period proceedings also need their relevant transitional provisions checked.

Which Act should be selected for a tax payment?

The Department’s e-Pay Tax General Questions FAQs provide these distinctions:

• Self-assessment tax for AY 2026–27: Income-tax Act, 1961.
• Advance tax for Tax Year 2026–27: Income-tax Act, 2025.

These are period-selection examples, not a calculation of your tax liability or confirmation of a due date.

Who should pay attention?

Taxpayers, business finance teams and professionals handling return preparation or tax payments should check the income period, the type of compliance and the applicable law together.

A practical check before you proceed

1. Write down the income period using actual start and end dates.
2. Identify the task: return, self-assessment tax, advance tax or an earlier-period proceeding.
3. Check the official form or portal guidance for that task.
4. Review the selected Act and AY/Tax Year before submission.
5. Retain the acknowledgement and supporting period-selection notes.

A separate download is unnecessary for this short update: the comparison table and checks are available within the article.

Official sources and review date

• Ministry of Finance / PIB commencement release — published 1 April 2026.
• Income Tax Department: Objective and scope FAQs — see questions 9 and 21.
• Income Tax Department: e-Pay Tax General Questions — see questions 1–6.

Sources checked: 12 October 2026. FAQ publication dates are not stated here because a reliable original publication date was not available on the retrieved pages.

Scope: General educational information about this transition only. It does not cover every savings provision, form, tax rate, deadline or later amendment. Check current official guidance and the facts of the particular case before filing or paying.

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