Income Tax

Direct taxation in India changed structurally on 1 April 2026, when the Income-tax Act, 2025 replaced the Income-tax Act, 1961, accompanied by the Income-tax Rules, 2026. Rates and slabs are unchanged, but virtually every section has been renumbered, and "assessment year" and "previous year" have been replaced by a single concept — the Tax Year.

For most taxpayers the practical effect is limited. For anyone with a pending assessment, an appeal in progress, or a return position that relies on a specific section reference, the transition matters, because proceedings already in motion continue under the old Act while fresh matters proceed under the new one.

What the work covers

Return preparation and filing. Returns for salaried individuals, professionals, proprietors, partnership firms, LLPs, private limited companies and non-resident individuals. Includes reconciliation against the Annual Information Statement and Form 26AS before filing — the single most common source of a later notice is a return that does not agree with what the department already holds.

Capital gains. Computation on listed and unlisted securities, mutual funds, immovable property and unlisted shares, including indexation and exemption positions, and reconciliation of broker statements where multiple accounts are involved.

Advance tax. Quarterly estimation and computation, so that interest under the shortfall provisions is avoided rather than paid.

TDS and TCS. Quarterly statement filing, correction statements, lower-deduction certificate applications, and reconciliation of deductee-side credits.

Tax audit. Preparation and filing of the audit report where turnover or the presumptive conditions require it, together with the supporting annexures.

Planning. Regime comparison, structuring of remuneration and drawings, timing of capital transactions, and review of deduction eligibility — undertaken during the year, where it can still change the outcome, rather than at filing time when it cannot.

Who this is relevant to

• Salaried individuals, particularly those with capital gains, more than one employer during the year, foreign assets or ESOPs
• Professionals and consultants deciding between presumptive and regular computation
• Proprietors and firms approaching the tax audit threshold
• Non-residents with Indian income, property or repatriation questions
• Companies and LLPs requiring return, audit and TDS compliance as one package

How the work runs

Collection. A defined document list is shared at the start so that information is gathered once rather than in fragments.

Reconciliation. Income and tax credits are matched against the AIS, Form 26AS and the taxpayer's own records. Differences are resolved before filing.

Computation and review. The return is prepared, the position on any judgement-based item is documented, and the computation is shared for approval before submission.

Filing and follow-through. Submission, verification, and monitoring of processing — including rectification or response where an intimation raises a demand or adjustment.

Frequently asked questions

Does the Income-tax Act, 2025 change how much tax I pay?
No. The 2025 Act is principally a consolidation and re-codification. Rates, slabs, and the choice between regimes continue as before. What changes is the structure of the statute and the terminology.

I have an assessment pending from an earlier year. Which law applies?
Proceedings already in motion continue under the Act under which they commenced. The repeal does not disturb tax years beginning before 1 April 2026.

My Form 26AS and AIS do not match my own records. What should I do?
Do not file until the difference is understood. Filing over an unexplained mismatch is the most reliable way to receive a notice. The AIS carries a feedback mechanism for genuinely incorrect entries.

Can returns for earlier years still be filed or corrected?
Depending on the year and the circumstances, an updated return may be available. The position depends on how much time has elapsed and whether proceedings are already underway.

The content of this page is general information and does not constitute professional advice. Statutory positions change; the position applicable to a particular case is confirmed on review.