Hi there! 
We are officially one week into the Income Tax Act, 2025 and the new Tax Year 2026-27.
If you’ve logged into the Income Tax Portal recently, you’ve likely realized this isn’t just a design update – it looks and works a little differently now. As you begin preparing your returns for the year that just ended, the shift becomes obvious. The portal now runs both the old (1961) and new (2025) Acts side by side – making this transition year a bit more nuanced than usual.
This shows up right at the start of the process. When you go to e-Pay tax, you’re now asked to choose the applicable Act before making a payment. If you get this wrong, your entire filing process can be stalled.
There’s a similar cleanup on the TDS side. Instead of managing multiple standalone forms for payments like rent, property purchase, etc. everything now rolls into a single Form 141, neatly divided into separate schedules for each type of payment. If you’ve purchased property, we’ve covered how to file TDS for it on the portal.
And while you’re getting comfortable with these changes, it’s also the right time to zoom out for a moment and evaluate whether the old or new regime will be more beneficial for you in Tax Year 2026-27, so you can plan your taxes ahead.
We’ve handpicked threads on these topics in today’s edition.
TOP THREADS
How do I e-pay tax on the Income Tax Portal?
To pay your self-assessment tax, advance tax, or other taxes online, first log in to the Income Tax e-filing portal. Then head to the e-File section and select e-Pay Tax. You’ll now see options to choose the applicable Income Tax Act, this is where you need to…Continue Reading
I’ve purchased a property, how to file Form 141 for TDS?
With the new Income Tax Act, the old Form 26QB has been retired and consolidated into Form 141, which is now a single form used for multiple TDS payments. If you’ve purchased property and need to deduct tax, you must specifically select Schedule B within the Form. Here’s a step-by-step guide on how to file it on the portal…Continue Reading
How do I decide between the old and new tax regime in Tax Year 2026-27?
The choice of tax regime sets the tone for your entire tax calculation, as it decides the slab that apply, the deductions you can claim, and the rebates you’re eligible for. That’s why it’s important to compare both regimes carefully because the right one can lead to significant…Continue Reading
FAQs
The portal now asks me to choose between Income Tax Act 1961 and 2025 when paying tax. Which one do I select?
If you’re paying self-assessment tax for AY 2026-27 or any earlier AYs, select Income Tax Act 1961. And if you’re paying advance tax for income earned from April 2026 onwards (TY 2026-27), select Income Tax Act 2025.
What if I select wrong type of payment or Assessment Year (Tax Year) while paying tax?
You have 7 days from the payment date to correct the challan online through the Income Tax Portal. After 7 days, you’ll need to visit your jurisdictional Assessing Officer with a physical request, which might take longer.
Are there any changes in tax slab rates for Tax Year 2026–27?
No, there are no changes to tax slab rates in both old and new tax regime under the new Income Tax Act.
RESULTS FROM LAST DIGEST
What’s the new STT rate on futures from April 1, 2026?
A) 0.02% (13%)
B) 0.1% (12%)
C) 0.05% (63%)
D) 0.15% (12%)
Well done! 63% of people chose the right answer.