Explainer
The Income-tax Act, 2025: what the "tax year" changes for you
The new Act has applied from 1 April 2026. The words and section numbers change more than the tax you pay. A short guide to what to look for.
From 1 April 2026 the Income-tax Act, 2025 has taken the place of the 1961 Act. For most people the tax works out much as before; what changes first is the vocabulary.
One "tax year" instead of two years
The old pair of "previous year" and "assessment year" gives way to a single tax year, the year in which you earn the income. Notices, forms and our letters will use it.
New section numbers
Familiar numbers change. When a notice quotes a section you don't recognise, it is often an old provision under a new number. Send us the notice before you reply.
What to do now
- Keep paying advance tax on the usual dates.
- Keep your old returns: earlier years are still assessed under the old Act.
- Check the official notification before you rely on any form number.
Sample note written for a website template: check the current law before acting on it.
This note is general information as at 1 November 2026. It isn't advice for any particular case; the law may have changed since.