Transitioning to Income Tax Act 2025: ITR Forms and Compliance

The Income Tax Department has provided crucial updates regarding the availability of new Income Tax Return (ITR) forms for both Assessment Year (AY) 2026-27 (for income earned in Financial Year 2025-26) and the new Tax Year 2026-27 (for income earned in Financial Year 2026-27). The government will notify the new ITR forms under the Income Tax Rules, 2026, well in advance of the filing due dates for Tax Year 2026-27, and these will be accessible on the e-filing portal.

For AY 2026-27, which covers income from FY 2025-26, the ITR forms (ITR-1 to ITR-7) under the Income Tax Act, 1961, will be notified soon and made available on the e-filing portal. Taxpayers must select AY 2026-27 when filing returns for income earned during FY 2025-26. It is important to note that the e-filing portal will support compliances under both the old Income Tax Act, 1961, and the new Income Tax Act, 2025, simultaneously.

Taxpayers need to be aware that for Tax Year 2026-27 (income of FY 2026-27), the return is not due until July 2027. However, individuals should monitor their income, TDS, and advance tax payments under the new Act's framework starting from April 2026. The time limits for filing belated, revised, and updated returns have also been specified under the Income Tax Act, 2025.

Regarding tax audit reports for FY 2025-26 (AY 2026-27), these reports relate to AY 2026-27 under the Income Tax Act, 1961. They must be filed in the prescribed forms (Form 3CA/3CB/3CD) under the old Act, even if the actual filing occurs after April 1, 2026. The due date for furnishing the tax audit report for AY 2026-27 is generally one month before the ITR due date, for instance, September 30, 2026, for cases where the ITR due date is October 31, 2026.