Income Tax
FY 2026-27 Tax Filing Prep Checklist: Get Ready for the Income-tax Act 2025
Reviewed by CA Nikhil Gupta · Last reviewed 26 July 2026
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 for ITR-1/ITR-2, or 31 August 2026 for non-audit ITR-3/ITR-4) 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, 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' |
New to this series?Start with our complete overview of what changes under the Income-tax Act 2025.
Read the Overview →
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 ITR-1/ITR-2, or 31 August 2026 for non-audit ITR-3/ITR-4, 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.
Source and review trail
Use the current official instrument, portal or regulator publication before acting. This panel separates the category authority from page-specific references.
- Primary category
- Income Tax
- Official starting point
- www.incometaxindia.gov.in
Page source links
The prior page did not embed a page-specific external source. The category authority above is the minimum verification starting point; a specific instrument should be added when available.
Primary sources & related provisions
Statutory provisions referenced in this guide: