Hi there! 
India’s tax system turns a new page today, as the Income Tax Act of 1961, older than colour television in India, is being replaced by the new Income Tax Act, 2025.
This is a complete rewrite of the law. After 64 years and 4,000+ amendments, the government is aiming to make taxes simpler, shorter, and more human-readable. For the first time, the Income Tax Department has also changed how the Act is presented – using 39 tables and 40 formulae instead of long, dense paragraphs.
One of the most welcome changes is that the confusing split between Financial Year (FY) and Assessment Year (AY) is gone. From today, we simply call it a Tax Year. Beyond that, several other changes come into effect today: new PAN application rules, fresh income tax forms, an increase in STT for F&O transactions, extended ITR filing due dates, and more.
And importantly, the CBDT has released ITR forms for AY 2026-27 with several important changes that will affect your filing this year.
To help you navigate Day 1 of this new system, we’ve handpicked these threads.
TOP THREADS
ITR Forms are out. Here’s what’s changing for AY 2026-27.
The CBDT notified all ITR forms for the Assessment Year 2026-27 on March 30–31, 2026. While most of the structure remains familiar, there are several changes to how you file your return. These include changes to ITR-1 filing eligibility, reporting LTCG…Continue Reading
What does the new Income Tax Act, 2025, actually change?
India’s tax law is getting a complete reset for the first time since 1961. But before you panic, your tax rates and slabs aren’t changing. The new Income Tax Act is simpler to read, with fewer sections and clearer language, but more importantly, it brings practical changes, including…Continue Reading
What changes from April 1, 2026, will impact you directly?
The new Tax Year 2026-27 brings sweeping changes that directly affect how much tax you’ll pay. From the rollout of the new Income Tax Act 2025 to revised rules on share buybacks, employee benefits, ITR deadlines, and an increase in FASTag annual pass fees, there’s a lot that changes this year. Here’s what you need to know…Continue Reading
FAQs
What exactly is the Tax Year?
Starting today, you don’t have to deal with two different years: Financial Year and Assessment Year. They’ve been replaced with a single term called Tax Year. So, if you earn income in 2026-27, it falls under Tax Year 2026-27, and you’ll file that income within the same year.
What’s the new ITR filing deadline?
If you’re a small business owner or professional, the deadline to file ITR-3 (non-audit cases) and ITR-4 has been extended to Aug 31, instead of July 31. You’ll also get more time to file a revised return, now extended from Dec 31 to March 31, with a small fee.
Any changes in ITR-3 for F&O traders?
Yes, ITR-3 now has two separate fields for F&O turnover and income, in addition to intraday reporting. This field will make reporting simpler and reduce the risk of errors or mismatches with broker data.
RESULTS FROM LAST DIGEST
Which of these can help reduce your tax liability?
A) Tax-loss harvesting (60%)
B) Tax-gain harvesting (10%)
C) Both (30%) 
D) Depends on portfolio (0%)
Only 30% of people chose the right answer.