Income tax filing rules explained AY 2026-27 vs Tax Year 2026-27: Key changes you must know

What is the difference between AY 2026 27 and Tax Year 2026 27?

AY 2026 27 refers to income earned during FY 2025 26 and will be filed under the Income Tax Act 1961. Tax Year 2026 27 refers to income earned in FY 2026 27 under the new Income Tax Act 2025.

Both are separate filing obligations and will be handled accordingly on the e-filing portal.

Which law applies to income earned in FY 2025-26

Income earned in FY 2025-26 will be assessed under the old Income Tax Act 1961 for AY 2026 27. Even if the return is filed after 1 April 2026, the old law will continue to apply.

Can I revise my return for AY 2026 27

Yes. A revised return for AY 2026-27 can be filed under Section 139(5) of the old Act. It must be filed before the end of the assessment year or before completion of the assessment, whichever is earlier.

What is the last date for filing a belated return

A belated return for AY 2026-27 can be filed up to 31 December 2026 under Section 139(4). However, late filing fees will apply depending on total income.

What is an updated return ITR-U?

An updated return allows taxpayers to correct or report additional income even after filing the original return. It can be filed under Section 139(8A) within the prescribed time limits, but comes with additional tax liability and certain restrictions.