Tax return filing for AY 2026–27 to continue under Income Tax Act, 1961 forms

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Income tax returns for assessment year 2026–27 will continue to be filed using the existing forms prescribed under the Income Tax Act, 1961, even as the new Income Tax framework is scheduled to come into force from April 1, 2026, sources in the Central Board of Direct Taxes (CBDT) said.

“The returns to be filed in the upcoming assessment year will be governed by the existing rules and forms. There is no change for taxpayers in terms of return forms for AY 2026–27,” a CBDT source said.

Transition to new Act designed to widen tax base

While around 9 crore income tax returns are currently filed, nearly 12 crore individuals are estimated to be paying taxes through various channels, underscoring the scope for expanding formal return filing.

“The objective is to gradually bring more taxpayers into the filing net without easier compliance,” the source said.

New reporting architecture from 2027

Officials said that substantive changes under the new framework—particularly on data sharing and third-party reporting—will take effect only in subsequent years. “The information-sharing architecture under the new law will start operating from 2027,” a CBDT source said.

As part of this phase-in, crypto exchanges and other intermediaries are expected to begin furnishing transaction data to the tax department in line with the new Income Tax Act for the financial year 2027 onwards, the source added.