The Income Tax Act, 2025 came into effect from 1 April 2026, introducing a simplified statutory framework and revised forms for taxpayers, deductors, businesses and professionals.
The transition affects the form numbers and procedures used for Tax Year 2026–27 onwards. Taxpayers should carefully distinguish between compliance relating to earlier assessment years and compliance governed by the new Act.
Key Changes to Note
Existing PAN and TAN numbers remain valid. Taxpayers do not need to obtain new numbers merely because the new Act has commenced.
For Tax Year 2026–27, the earlier Forms 15G and 15H have been combined into a unified Form 121. The revised framework is intended to simplify declarations for eligible taxpayers seeking non-deduction of tax.
For foreign remittances made on or after 1 April 2026, Form 145 replaces Form 15CA and Form 146 replaces Form 15CB. The substantive requirements relating to reporting, certification and TDS compliance continue to apply.
Tax-audit reports for Financial Year 2025–26 and Assessment Year 2026–27 will continue to use Forms 3CA, 3CB and 3CD under the earlier law. For Tax Year 2026–27 under the new Act, the tax-audit report will be filed through the unified Form 26.
What Should Taxpayers and Businesses Do?
• Identify whether the transaction or filing relates to the earlier Act or the Income Tax Act, 2025.
• Confirm the correct Assessment Year or Tax Year.
• Use the revised form applicable to the compliance requirement.
• Review TDS, foreign-remittance and tax-audit obligations before filing.
• Retain supporting documents and complete all filings within the prescribed timelines.
How Deepak Patil & Co. Can Help
Deepak Patil & Co. can assist individuals, professionals and businesses during the transition by identifying the applicable provisions, selecting the correct forms and completing tax filings accurately and on time.
Official Source
Income Tax Department, Government of India:
https://www.incometax.gov.in/iec/foportal/help/all-topics/e-filing-services/income-tax-forms
Disclaimer: This article provides general information only. Applicability may differ according to the facts of each case. Professional advice should be obtained before taking any action.
