ITR Filing 2026: Big news for taxpayers. 2026 is set to be a pivotal year in the tax landscape of India. The government is phasing out the long-standing 1961 law and introducing the new Income Tax Act, 2025. However, the primary concern for taxpayers is which law will govern the ITRs submitted in July this year. Experts indicate that this transition will occur on a yearly basis, so there’s no need for concern; the old law will still apply for your current filing.
The regulations will remain unchanged for the 2026 filing
This year, you won’t notice any alterations in tax filing regulations. The old law (1961) will govern any income you earn from 2025-26, specifically from April 1, 2025, to March 31, 2026. This implies that you’ll continue to receive the same tax exemptions and benefits that you have always enjoyed.
The new law (Act 2025) will take effect for income starting next year, on April 1, 2026. You will need to file your returns according to the new law in 2027. So, there’s no need to fret about filing this year; everything will proceed as normal.
Updates on tax forms and terminology changes
Although the old law is still in effect, the CBDT is already preparing for the future. Terms such as financial year and assessment year will now be simplified to the term tax year. Additionally, the government has announced new forms. For instance, the well-known Form 16 will now be referred to as Form 130, and Form 26AS will be replaced with Form 168. These modifications aim to modernize the tax system and make it more digital-friendly.
What has changed for salaried individuals?
With the new regulations, there are some updates for salaried individuals. The child education allowance has significantly increased to Rs. 3,000 per month, which is a substantial relief. Moreover, residents of Bengaluru, Pune, Hyderabad, and Ahmedabad will now be eligible for a 50% HRA exemption, as these cities are classified as metro areas. However, stricter rules will also be enforced. If you are residing in a relative’s home and paying rent, it will be necessary to disclose this information to avoid tax evasion.