Income Tax Act, 2025: CBDT Confirms Existing PANs Will Continue to Be Valid from April 1, 2026

The Income Tax Department has issued a detailed set of Frequently Asked Questions (FAQs) to facilitate a smooth transition to the Income Tax Act, 2025, which will become effective from April 1, 2026. The clarification addresses key procedural and compliance-related issues for taxpayers during the shift from the existing Income Tax Act, 1961.

One of the major clarifications confirms that existing Permanent Account Numbers (PANs) will continue to remain valid after the new law comes into force. Taxpayers will not be required to submit fresh PAN applications solely due to the implementation of the Income Tax Act, 2025.

The Department has also clarified that applications, requests, and proceedings initiated under the Income Tax Act, 1961 will continue to be processed without requiring fresh submissions, ensuring continuity during the transition period.

Further, taxpayers have been informed that Income Tax Returns (ITRs) relating to Financial Year 2025-26 (Assessment Year 2026-27) will continue to be filed under the provisions of the Income Tax Act, 1961, as the income for that financial year pertains to the period governed by the existing legislation.

The FAQs also explain that the Income Tax Rules, 2026 will introduce new prescribed forms and procedural formats required under the new Act. These forms will apply wherever specifically notified and will support the implementation of the revised statutory framework from April 1, 2026.

The clarifications are intended to provide certainty to taxpayers, professionals, businesses, and other stakeholders regarding procedural continuity, statutory compliance, and the implementation of the new income tax legislation.