CA Sansaar
E-Filing Portal to Enable Old & New Tax Compliance During Transition
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The Income Tax Department has clarified that its e-filing portal will be equipped to handle compliance requirements under both the existing Income Tax Act and the upcoming Income Tax Act, 2025 during the transition period. All ongoing matters related to previous assessment years—including assessments, appeals, rectifications, and other proceedings—will continue to be governed and concluded under the provisions of the old Act until they reach finality.
As part of its preparedness for the new tax framework, the department has also released a set of Frequently Asked Questions (FAQs) to guide taxpayers. It has been specified that income tax returns for Assessment Year 2026–27, which relate to income earned under the old regime, will be filed using the forms and provisions applicable under the current law, even if the filing occurs in July 2026.
Simultaneously, the transition to the new tax system will begin with advance tax obligations. Taxpayers will be required to compute and pay advance tax for the Financial Year 2026–27 (Tax Year 2026–27), starting from June 2026, in accordance with the provisions of the new Income Tax Act, 2025. This dual compliance approach is aimed at ensuring a smooth and structured shift to the new tax regime without disrupting existing processes.
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