Pending professional review. This content was drafted with Claude from official sources and has not yet been reviewed by an ArthaKara professional. Verify against the official sources before relying on it.
Income earned from 1 April 2026 (Tax Year 2026-27 onwards) is governed by the Income-tax Act, 2025. Earlier years remain under the Income-tax Act, 1961.
Detailed explanation
The Income-tax Act, 2025 came into force on 1 April 2026 and replaces 'previous year' and 'assessment year' with a single 'tax year'. Returns for FY 2025-26 (AY 2026-27), and assessments, appeals and proceedings for earlier years, continue under the 1961 Act, subject to the transitional and savings provisions of the 2025 Act.
Applicability
All taxpayers
Exceptions
Pending proceedings and earlier years continue under the 1961 Act as provided in the savings provisions.
Legal references
Income-tax Act, 2025 (repeal and savings provisions)
Applicable period
Tax Year 2026-27 onwards
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