The Income Tax Act, 2025, has come into force this month (April 1). It has replaced the Income Tax Act, 1961. However, Income Tax Returns for the financial year 2025-26 will be filed under the Income Tax Act, 1961. Taxpayers will continue to use the terms ‘Previous Year’ and ‘Assessment Year’ as before.
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Income Tax Act: The new financial year commenced on April 1st. The Income Tax Department has notified the Income Tax Return (ITR) forms for the Assessment Year 2026-27. Tax experts state that taxpayers can begin filing their returns starting this month. The Income Tax Department typically releases the ITR forms first, followed by enabling the corresponding utilities. Once these utilities are enabled, taxpayers can proceed to file their returns.
Return Filing Process Began Late Last Year
Experts anticipate that the utilities are expected to be enabled shortly. One expert noted, “Generally, ITR filing commences in April. Last year, however, the process was delayed because significant amendments were introduced to the Income Tax provisions. These changes included modifications related to LTCG (Long-Term Capital Gains), STCG (Short-Term Capital Gains), and indexation.” He added that since the Income Tax Department has already notified the ITR forms in advance this time around, return filing is expected to begin this very month.
Salaried Taxpayers Must Wait Until They Receive Form 16
Salaried taxpayers—that is, employed individuals—will have to wait a while before they can file their tax returns. The reason for this is Form 16. Form 16 is a mandatory requirement for salaried taxpayers to file their returns. Employers (companies) are required to issue Form 16 by June 15th every year. This form contains comprehensive details regarding an employee’s salary and Tax Deducted at Source (TDS) for the relevant financial year. These details are subsequently used for filing Income Tax Returns.
Returns to be Filed Under the Income Tax Act, 1961
The Income Tax Act, 2025, came into effect this month (April 1). It has replaced the Income Tax Act, 1961. However, Income Tax Returns for the financial year 2025-26 will be filed under the provisions of the Income Tax Act, 1961. As in the past, taxpayers will continue to use the concepts of the ‘Previous Year’ and the ‘Assessment Year.’ For individual taxpayers, the deadline for filing returns will be July 31. On March 30, the government notified the Income Tax Return (ITR) forms applicable for the Assessment Year 2026-27. These include forms ranging from ITR-1 to ITR-7.
Permission to Use ITR-1 Even with Two House Properties
According to a notification issued by the Income Tax Department, the ITR-1 (Sahaj) form can now be used to report income derived from two house properties. Previously, taxpayers owning more than one house property were required to use either ITR-2 or ITR-3. However, certain conditions regarding the use of ITR-1 will remain unchanged. A taxpayer cannot use ITR-1 if they have income from a business or profession, capital gains exceeding ₹1.25 lakh under Section 112A, or income from sources such as lottery winnings or horse racing.
