FURNISHING OF INCOME TAX RETURN (ITR) 2025 & INCOME TAX RULE ,2026
A. OVERVIEW — RETURN FILING FRAMEWORK DURING TRANSITION
Q3.1 What are the key provisions relating to filing of return of income under the Income-tax Act, 2025?
Ans. The provisions relating to filing of return of income are contained in Section 263 of the Income-tax Act, 2025. Section 263 contains the provisions for original return (subsection 1), belated return (sub-section 4), revised return (sub-section 5), and updated return (sub-section 6) into one unified section. The fundamental structure — mandatory filing, due dates, categories of persons obligated to file — remains the same as that under the old Act.
Q3.2 Is there any change in the obligation to file return of income under the new Act — i.e. which persons must mandatorily file a return?
Ans. Section 263(1) of the new Act prescribes the categories of persons who must mandatorily file a return. These categories are broadly the same as that under the old Act.
Q3.3 What is the due date for filing return of income under the Income-tax Act, 2025?
Ans. Section 263(1) of the Income-tax Act, 2025 prescribes the due dates for filing the return of income. The due dates are the same as under the old Act. Table for due dates as appearing in section 263(1)(c) [proposed as per Finance Bill, 2026] is as under:
Q3.4 Will taxpayers be required to file two returns (for AY 2026-27 as well as TY 2026-27) during the transition year (FY 2026-27)?
Ans. No. The obligation to file the return for the Tax Year 2026-27 will arise after the end of the Tax Year and it is similar to the framework existing in Income Tax Act, 1961. The timelines for filing Income Tax returns during transition period (as proposed in Finance Bill, 2026) are tabulated as under:
In simple words, the obligation to file the return for the Tax Year 2026-27 will arise after the end of the Tax Year. The Income Tax Returns, Forms etc. for the Tax Year 2026- 27 shall be notified by the Government well before the due dates.
Q3.5 Under which Act will the ITR for income earned during FY 2025-26 be filed?
Ans. The ITR for income earned during FY 2025-26 will be filed for Assessment Year 2026-27 under the provisions of the Income-tax Act, 1961. Even though the filing will typically occur after 1st April, 2026 (i.e., after the new Act has come into force), the return relates to a tax year beginning before 1st April, 2026 and is therefore governed entirely by the old Act.
Q3.6 Which ITR form should be used for AY 2026-27?
Ans. For AY 2026-27, the ITR forms (ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, ITR-7) applicable under the Income-tax Act, 1961 will soon be notified. These forms will be available on the e-filing portal well before the due date. Taxpayers should select AY 2026-27 while filing the ITR for income earned during FY 2025-26.
Q3.7 If a taxpayer discovers an error in the ITR filed for AY 2026-27 and wishes to file a revised return, which Act governs the revision?
Ans. The revised return for AY 2026-27 will be governed by the Income-tax Act, 1961. Under Section 139(5) of the old Act, a revised return can be filed before the expiry of the relevant assessment year (i.e., before 31st March*, 2027 for AY 2026-27) or before completion of assessment, whichever is earlier. The fact that the revision is being done after 01.04.2026 does not change the applicable Act. The old Act will continue to govern all filings relating to AY 2026-27 and earlier years.
(* as proposed in the Finance Bill, 2026)
Q3.8 What is the last date to file a belated return for AY 2026-27 under the old Act?
Ans. Pursuant to Section 139(4) of the Income-tax Act, 1961, a belated return for Assessment Year (AY) 2026–27 may be furnished on or before 31st December 2026, or prior to the completion of the assessment, whichever occurs earlier. Further, in accordance with Section 234F of the Act, a fee for delayed filing shall be levied at ₹1,000 where the total income does not exceed ₹5,00,000, and ₹5,000 in all other cases.
Q3.9 Can a taxpayer file an updated return (ITR-U) for AY 2026-27 under the old Act after the new Act comes into force?
Ans. Yes. The updated return for AY 2026-27 under Section 139(8A) of the old Act can be filed within the time period prescribed therein, even after the new Act has come into force. The old Act continues to govern all proceedings relating to tax years before 1st April, 2026.
Example: Mr. X filed his original ITR for AY 2026-27 on 25th July, 2026. In January 2028, he discovers additional income that was not reported. He can file an updated return (ITR-U) for AY 2026-27 under the old Act, subject to the time limits and additional tax requirements prescribed in Section 139(8A) of the old Act.
B. FILING OF ITR FOR EARLIER ASSESSMENT YEARS (AY 2025-26 AND BEFORE)
Q3.10 Can revised/belated/updated returns for AY 2025-26 or earlier years be filed on or after 1st April, 2026?
Ans. The time for filing revised or belated return for AY 2025-26 or an earlier assessment year will expire before 1st April, 2026. Therefore, revised/belated return for AY 2025-26 or an earlier assessment year, cannot be filed after 1st April, 2026. However, a taxpayer may still file his updated return (ITR-U), subject to the time limits prescribed under Section 139(8A) of the old Act.
Q3.11 Which ITR forms will be used for filing returns of earlier assessment years after 01.04.2026?
Ans. The ITR forms applicable under the old Act for the respective assessment year will continue to be used. The e-filing portal will continue to support old forms for earlier assessment years even after the new Act comes into force.
C. FILING OF ITR FOR TAX YEAR 2026-27 (INCOME OF FY 2026-27 — UNDER NEW ACT)
Q3.12 When will the new ITR forms for Tax Year 2026-27 be available?
Ans. The new ITR forms under the Income-tax Rules, 2026 will be notified by the Government well before the due dates for filing returns for Tax Year 2026-27. These ITR forms will be made available on the e-filing portal.
Q3.13 What are the time-limits for filing belated return, revised return and updated return in the Income Tax Act, 2025?
Ans: The time limits for filing belated return, revised return and updated return in the Income Tax Act, 2025 are tabulated as under:
(* as proposed in the Finance Bill, 2026)
Q3.14 What are the key provisions regarding updated returns (ITR-U) under the new Act?
Ans. Section 263(6) of the Income-tax Act, 2025 provides for filing of updated returns. The key provisions are:
(i) An updated return may be filed within forty-eight months from the end of the financial year succeeding the relevant tax year;
(ii) It is available whether or not the person has furnished an original, belated, or revised return;
(iii) The updated return cannot result in a return of enhanced loss, or decrease in total tax liability, or increase in refund;
(iv) Only one updated return can be filed per tax year;
(v) Additional income-tax is payable under Section 267 at prescribed rates along with the updated return.
These provisions are substantively the same as under Section 139(8A) of the old Act.
D. RETURN FILING SUBSEQUENT TO SEARCH OPERATION
Q3.15 If a search is initiated on a person under section 132 of the old Act before the new Act came into effect but notice for filing return of income for the blockperiod is issued after 01.04.2026. Under which Act, the taxpayer is required to file the return of income?
Ans: All proceedings connected with such a search continue to be governed by the old Act as if the new Act had not been enacted.Therefore, the taxpayer is required to file his return of income for the block period as per the provisions of section 158BC of the Income Tax Act, 1961. For example, if a search on a taxpayer is initiated in the month of January 2026, assessments and all other proceedings connected with the search will be under the provisions of the old Act.
Q3.16 If books of account, other documents or assets were requisitioned u/s 132A of the old Act, before the new Act comes into force, are the follow-up actions under the old Act or the new Act?
Ans: All proceedings connected with such requisition will be under the provisions of the old Act.
E. PRACTICAL SCENARIOS DURING PARALLEL OPERATION
Q3.17 Are AY 2026-27 and Tax Year 2026-27 the same?
Ans. These are two entirely separate compliance obligations:
(i) For AY 2026-27 (income of FY 2025-26): File the return using old ITR forms on the e-filing portal, selecting AY 2026-27. The due date is 31st July, 2026 or 31st August for non-audit cases, etc.
(ii) For Tax Year 2026-27 (income of FY 2026-27): This return is not due until July 2027. However, the taxpayer should keep track of income, TDS, and advance tax payments under the new Act framework from April 2026 onwards. The e-filing portal will support compliances under both the Acts simultaneously.
Q3.18 If the Income-tax Department sends a notice of defective return u/s 139(9) for AY 2026-27 after the new Act comes into force, which Act governs the response to such notice?
Ans. The response will be governed by the Income-tax Act, 1961. All proceedings relating to AY 2026-27 and earlier years continue under the old Act by virtue of Section 536(2)(c). The defective return must be rectified under Section 139(9) of the old Act within the time allowed in the notice.
Q3.19 If a taxpayer has filed return for AY 2026-27 but receives a notice under Section 143(2) of the old Act for scrutiny assessment, will that scrutiny continue under the old Act even though the new Act is in force?
Ans. Yes. The scrutiny assessment for AY 2026-27 (or any earlier year) will be completed under the provisions of the Income-tax Act, 1961. Section 536(2)(c) provides that the assessment proceedings relating to tax years beginning before 1st April, 2026 shall continue under the old Act.
Q3.20 What happens if a taxpayer who is required to file return for both AY 2026- 27 and TY 2026-27 files only one of them?
Ans. Both are independent legal obligations and both the returns must be filed within their respective due dates. Non-filing of either return will attract consequences under the respective Act.
F. LOSS RETURNS AND CARRY FORWARD OF LOSSES
Q3.21 If a taxpayer incurred a loss in FY 2025-26 (AY 2026-27), can this loss be carried forward under the new Act?
Ans. Yes. Losses determined for AY 2026-27 under the old Act can be carried forward and set off in Tax Year 2026-27 and subsequent tax years under the new Act, subject to the conditions prescribed. Section 536(2)(b) protects rights acquired under the old Act, and the carry-forward of losses is one such right subject to fulfilment of specified conditions.
Example: M/s. XYZ Trading LLP incurred a business loss of Rs. 15 lakhs in FY 2025-26 (AY 2026-27) and filed a return of loss within the due date. This loss can be carried forward and set off against business income of Tax Year 2026-27 and subsequent tax years, following the prescribed conditions.
Q3.22 Is filing the return of loss within the due date necessary for carry-forward purposes under the new Act?
Ans. Yes. The requirement to file the return of loss within the due date prescribed in Section 263(1) (corresponding to Section 139(1) of the old Act) continues to be a prerequisite for carry-forward of losses under the new Act as well. This condition applies to losses under the heads “Profits and gains of business or profession”, activity of owning and maintaining race horses and “Capital gains”. The new Act retains this condition under Section 121.
Q3.23 If a loss was already being carried forward from AY 2022-23 under the old Act and remains unabsorbed till AY2026-27, does the carry-forward continue seamlessly under the new Act?
Ans. Yes. The unabsorbed losses from earlier years that are being carried forward under the old Act will continue to be carried forward under the new Act, subject to the same conditions (type of loss, period of carry-forward, etc.). The transition does not interrupt or restart the carry-forward period. Example: M/s. ABC Pvt. Ltd. had an unabsorbed business loss from AY 2022-23 being carried forward. As of Tax Year 2026-27, this loss has already been carried forward for four years. It can continue to be set off for the remaining four years (total eight years from AY 2022-23) under the new Act.
G. VERIFICATION, AUDIT REPORT AND PENALTY
Q3.24 Is there any change in the manner of verification of the return of income or as regards person who is required to verify the return under the new Act?
Ans. There is no substantive change in the manner of verification of the return of income or as regards person who is required to verify the return under the new Act. Section 265 of the Income Tax Act, 2025 prescribes the persons authorised to verify the return for each category of assessee (individual, company, firm, etc.), and these are the same as under the old Act. Electronic verification through Aadhaar OTP, net banking, Digital signature or other prescribed modes will continue.
Q3.25 The tax audit report for FY 2025-26 will be filed after 1st April, 2026. Which Act will govern the filing of the tax audit report for FY 2025-26 (AY2026-27)?
Ans. The audit report for FY 2025-26 relates to AY 2026-27 under the Income-tax Act, 1961. It must be filed in the prescribed form under the old Act (Form 3CA/3CB/3CD as applicable), even if the actual filing occurs after 01.04.2026. The due date for furnishing the tax audit report for AY 2026-27 is one month before the ITR due date, e.g., 30th September, 2026 for cases where the ITR due date is 31st October, 2026, and 31st October, 2026 for transfer pricing cases where the ITR due date is 30th November, 2026.
Q3.26 What is the fee for late filing of return under the new Act?
Ans. Section 428 of the Income-tax Act, 2025 prescribes the fee for delayed filing of income tax return. The amount is the same as under the old Act (Section 234F of 1961 Act):
(i) Rs. 1,000 if total income does not exceed Rs. 5 lakhs;
(ii) Rs. 5,000 in any other case
Note: This fee applies for returns under the new Act (Tax Year 2026-27 onwards). For AY 2026-27 and earlier years, the fee as prescribed under Section 234F of the old Act will apply.
Q3.27 Will the e-filing portal simultaneously supports filings under both the old and new Acts?
Ans. Yes. The Government is taking appropriate measures to ensure the e-filing portal supports return filing under both Acts during the transition period. Taxpayers will be able to select either the Assessment Year (for filings under the old Act) or the Tax Year (for filings under the new Act) on the portal. The portal interface will guide taxpayers to the correct forms based on their selection.
Q3.28 How should taxpayers keep records for the transition year to ensure smooth filing under both Acts?
Ans. Taxpayers should:
(i) Maintain clear demarcation of income, expenses, TDS, and advance tax between FY 2025-26 (governed by old Act) and FY 2026-27 (governed by new Act);
(ii) Ensure all challans correctly reflect AY 2026-27 or Tax Year 2026-27 as applicable;
(iii) Reconcile Form 26AS / Annual Tax Statement for each year separately;
(iv)Keep a section-mapping reference handy (old Act section to new Act section) for accurate reporting;
(v) File returns well before due dates to have buffer time for any transition issues in portal.