Income Tax · New Income Tax Act 2025
FY 2026-27 Tax Filing Prep Checklist: Get Ready for the Income-tax Act 2025
Finin2min Tax Desk·June 2026·7 min readCHECKLIST · ACT 2025
Tax Year 2026-27 — the first full year under the Income-tax Act, 2025 — begins on 1 April 2026. Across this series, we've covered what changes (mostly section numbers and a few procedural improvements) and what doesn't (rates, slabs, deduction limits). This final article in our Income-tax Act 2025 series pulls it all together into one practical, month-by-month checklist to make sure you're ready.
Before 1 April 2026: Final Prep for FY2025-26 (Old Act)
- Complete your FY2025-26 tax-saving investments by 31 March 2026 — Section 80C, 80D, NPS contributions, etc. all apply under the old Income-tax Act, 1961 numbering for this year, exactly as in prior years.
- Don't confuse FY2025-26 filing (due 31 July 2026) with the new Act — your AY2026-27 return for FY2025-26 income is filed under the old Act's framework, just using the updated ITR forms covered in our ITR forms article (2-house-property ITR-1, unrealised rent field, etc.).
April-June 2026: Tax Year 2026-27 Begins
- Expect new section citations on payslips and TDS certificates — Section 392 instead of 192 for salary TDS, Section 393 codes for contractor/rent/professional-fee TDS, Section 123/124/126 etc. for Chapter VIA deductions.
- Verify your e-filing portal contact details — with the new ₹10,000-₹1,00,000 non-response penalty for faceless notices, this is the single highest-value action from this entire series.
- Continue tax-saving investments as planned — Section 123 (old 80C) ₹1.5 lakh limit, Section 126 (old 80D) health insurance limits, and NPS limits under Section 124 all continue unchanged. No need to restructure your investment strategy because of this Act.
- If you're a business, confirm your accounting/TDS software is updated for the new Section 392-394 payment codes — check with your software vendor (Tally, ClearTax, Zoho Books, etc.) that the FY2026-27 update has been applied.
Throughout FY2026-27: Ongoing Habits
- Maintain a notice-response log — given the new non-response penalty, keep a simple record of every portal communication received and your response date.
- Use the 'Tax Year' terminology when communicating with your CA or filling forms — 'Tax Year 2026-27' replaces 'FY2026-27 / AY2027-28' in official references, though informal usage of FY/AY will likely persist for years.
- If you receive a faceless notice and disagree with a proposed addition, remember your Section 532 right to request a personal hearing via video conferencing before any adverse order — don't assume your only option is a written response.
- If you run a charitable trust/NGO, confirm your RNPO registration status and renewal timeline (3/5/10-year validity periods) under the new Chapter XVII-B framework.
January-March 2027: Closing Out Tax Year 2026-27
- Complete Section 123/124/126 (old 80C/80CCD/80D) investments by 31 March 2027 — same deadline discipline as before, just under new section numbers.
- If you're a presumptive taxpayer (44AD/44ADA equivalent), pay your single advance tax instalment by 15 March 2027 as usual.
- Start gathering documents for your first Income-tax Act 2025 ITR (for Tax Year 2026-27, likely due around 31 July 2027) — Form 16 with new section references, capital gains statements citing Clauses 67/196-198, and investment proofs citing Section 123/124/126.
The One-Page Summary
| What | Bottom Line |
|---|
| Tax rates & slabs | Unchanged by this Act (governed by Finance Acts separately) |
| Deduction limits (80C→123, 80D→126, etc.) | Unchanged amounts, new section numbers |
| TDS rates & thresholds (salary, contractors, rent, professional fees) | Unchanged, new Section 392-394 codes |
| Capital gains rates & holding periods | Unchanged, reorganised into Clauses 67/196-198/85-88 |
| Faceless assessment | New: statutory personal hearing right (Section 532) + new non-response penalty (₹10,000-₹1,00,000) |
| Charitable trusts | New unified 'RNPO' registration (Chapter XVII-B) |
| MAT | 14% (from 15%), becomes final tax — no credit carry-forward |
| Terminology | 'Tax Year' replaces 'Previous Year' / 'Assessment Year' |
Frequently Asked Questions
What's the single most important thing to do before Tax Year 2026-27 begins? ▼
Verify your registered email and mobile number on the income tax e-filing portal are current and actively monitored. The Income-tax Act, 2025 introduces a ₹10,000-₹1,00,000 penalty for non-response to faceless assessment notices, document requests, or hearings — and this penalty applies regardless of whether you actually owe additional tax. This is the highest-value, lowest-effort action from this entire series.
Do I need to change my tax-saving investment strategy because of the Income-tax Act 2025? ▼
No. The deduction limits for Section 80C-equivalent (now Section 123), Section 80D-equivalent (now Section 126), NPS (now Section 124), and other Chapter VIA deductions are reported to be carried forward unchanged. Continue your existing investment strategy — PPF, ELSS, health insurance, NPS, etc. — exactly as planned. Only the section numbers referenced on your investment proofs and Form 16 will change from FY2026-27 onward.
When do I file my first return under the Income-tax Act 2025? ▼
Your FY2025-26 return (due 31 July 2026, for AY2026-27) is filed under the existing Income-tax Act, 1961 framework, using the updated ITR forms. Your first return for income earned under the Income-tax Act, 2025 would be for Tax Year 2026-27 (1 April 2026 - 31 March 2027), likely due around 31 July 2027, following the same filing deadline pattern as before.