Every question taxpayers ask about ITR filing under the new Income Tax Act 2025 — answered by our experts.
Which Income Tax Act applies to my ITR filing this year?+
It depends on which year you are filing for. If you are filing for Tax Year 2026-27 (income earned between 1 April 2026 and 31 March 2027), the Income Tax Act 2025 applies. If you are filing for FY 2025-26 (income earned before 31 March 2026) — that return is still governed by the Income Tax Act 1961, filed as AY 2026-27. Taxocount applies the correct law automatically based on the year of your filing.
What is the difference between "Tax Year" and "Assessment Year" under the new Act?+
Under the Income Tax Act 1961, income earned in "Previous Year 2025-26" was assessed in "Assessment Year 2026-27" — a two-year system that confused millions. Under the Income Tax Act 2025, this is simplified: income earned in Tax Year 2026-27 is assessed within the same Tax Year 2026-27. There is no separate "Assessment Year" concept anymore. Think of it as earning and filing in the same named year — the income of Tax Year 2026-27 is your income from 1 April 2026 to 31 March 2027.
Should I choose the New Tax Regime or Old Tax Regime?+
It depends entirely on your specific income and deductions. The new regime is better if you have few deductions (no large 80C investments, no home loan, low rent). The old regime is better if your total deductions exceed the break-even threshold for your income level — typically if you claim 80C (₹1.5L), HRA, 80D, home loan interest (₹2L), and NPS contributions. At Taxocount, we compute your exact tax under both regimes before filing — at no extra charge — and recommend the regime that saves you the most.
What is the ITR filing due date for FY 2025-26 (AY 2026-27)?+
For FY 2025-26 (still governed by ITA 1961, filed as AY 2026-27): ITR-1 and ITR-2 (salaried, pensioners, capital gains): 31 July 2026. ITR-3 and ITR-4 (business, non-audit): 31 August 2026 (extended deadline under ITA 2025 transition). Tax audit cases: 31 October 2026. Belated or revised return: 31 December 2026. For Tax Year 2026-27 (first year under ITA 2025, filed in 2027), the same deadlines apply.
Is income up to ₹12 lakh really tax-free?+
Yes — for resident individuals under the new tax regime. A Section 87A rebate of ₹60,000 ensures zero net tax liability for taxable income up to ₹12 lakh. For salaried individuals, the standard deduction of ₹75,000 is deducted first — making gross salary up to ₹12.75 lakh effectively tax-free. However, this does not mean you don't need to file ITR — filing is still mandatory once your gross income exceeds the basic exemption limit (₹4 lakh under new regime).
What changed about Form 16 under the new Income Tax Act 2025?+
Form 16 (the TDS certificate issued by employers for salary income) has been renamed Form 130 under the Income Tax Rules 2026 effective 1 April 2026. The content and purpose remain identical — it's still the document showing your salary details and TDS deducted. For Tax Year 2026-27 onwards, your employer will issue Form 130. For FY 2025-26 (AY 2026-27), your employer still issues the old Form 16. Form 12BB (employee investment declaration) is replaced by Form 124.
Can I file ITR for previous years (2023-24, 2024-25)?+
Yes. Updated returns under Section 139(8A) allow filing for up to 2 years prior to the current Tax Year. You can file updated returns for FY 2022-23 onwards, subject to applicable additional tax payment (25% additional tax for filing within 12 months, 50% for 13-24 months). Taxocount handles all backlog and prior year ITR filings — we assess your liability, calculate the exact additional tax payable, and file to clear your compliance record completely.
What if I receive an income tax notice after filing?+
Don't panic — most notices are routine verification requests. Common notices include Section 143(1) (processing intimation), Section 143(2) (detailed scrutiny), Section 148 (income escaped assessment), and Section 139(9) (defective return). Taxocount handles responses to all types of income tax notices — we prepare the reply, submit supporting documents, and coordinate with the department on your behalf. Our Annual Compliance clients get unlimited notice support throughout the year at no extra charge.
What is a defective return and how do I fix it?+
A defective return notice under Section 139(9) is issued when your ITR has a technical error — wrong ITR form, missing schedule, data mismatch with Form 26AS/AIS, or incomplete information. You have 15 days from the notice date to respond and correct the defect. Taxocount identifies the exact defect, corrects the return, and files the response within the deadline. Ignoring a defective return notice leads to the return being treated as not filed — with all associated penalties.