Question 1

Does everything done under ITA 1961 become invalid on 1 April 2026?

Accepted Answer

ITA 1961 continues for all pre-April 2026 tax years. No. Section 536 of ITA 2025 repeals ITA 1961 but contains 22 sub-clauses preserving all past operations, rights, obligations, liabilities, penalties, assessments, and proceedings. Anything done under ITA 1961 remains valid. Section 536(4) further applies Section 6 of the General Clauses Act, 1897 as a catch-all to cover unforeseen gaps. (Section 536(1)–(4), ITA 2025)

Question 2

What is the new 'Tax Year' concept and is there a missing year?

Accepted Answer

ITA 2025 — Section 2 (Tax Year). The term 'Tax Year' replaces both 'Previous Year' and 'Assessment Year'. Tax Year = Financial Year (e.g., TY 2026-27 = FY 2026-27). There is no missing year: FY 2025-26 income is assessed under AY 2026-27 (ITA 1961); FY 2026-27 income under TY 2026-27 (ITA 2025). Any reference to 'Tax Year 2024-25' in ITA 2025 is read as Previous Year 2024-25 / AY 2025-26 per Section 536(3). (Section 536(3), ITA 2025)

Question 3

Which Act governs assessments, appeals, penalties, and other proceedings pending on the commencement date?

Accepted Answer

ITA 1961. Section 536(2)(c) provides that ITA 1961 continues to apply to any proceeding pending on 1 April 2026, and to any proceeding initiated on or after 1 April 2026 (including notices, assessment, reassessment, rectification, penalty, reference, revision, and appeals) for any tax year beginning before 1 April 2026. Procedures follow ITA 1961. (Section 536(2)(c), ITA 2025)

Question 4

Do registrations under ITA 1961 (e.g., charitable trust recognition) remain valid?

Accepted Answer

Yes — treated as granted under ITA 2025. Approvals, registrations, and recognitions granted under ITA 1961 are treated as if granted under the corresponding provision of ITA 2025, unless inconsistent with the new Act. Example: A charitable trust registered under Section 12AB of ITA 1961 is treated as registered under the corresponding ITA 2025 provision. (Section 536(2), ITA 2025)

Question 5

Do CBDT circulars issued under ITA 1961 still apply?

Accepted Answer

Yes — unless inconsistent with ITA 2025. Per Section 536(2)(j), all circulars, notifications, instructions, and approvals issued under ITA 1961 remain valid as long as they do not conflict with ITA 2025. Example: A circular clarifying 'work' under Section 194C of ITA 1961 continues to apply to Section 393 of ITA 2025 where the intent is unchanged. (Section 536(2)(j), ITA 2025)

Question 6

Do existing PAN, TAN, and faceless assessment/appeal schemes continue?

Accepted Answer

Yes — continue under ITA 2025. Existing PAN and TAN numbers remain valid. Faceless assessment and faceless appeal schemes are treated as made under the corresponding ITA 2025 provisions, or under Section 532 if no corresponding section exists. No fresh application is needed for existing PAN/TAN holders. (Section 536(2), Section 532, ITA 2025)

Question 7

Do Supreme Court and High Court judgments under ITA 1961 apply to corresponding ITA 2025 sections?

Accepted Answer

Yes — where the substantive provision is unchanged. Where ITA 2025 merely renumbers a provision without substantive change, all judicial precedents under the corresponding ITA 1961 section continue to apply. For example, Section 54 (now Section 82) — the exemption conditions are unchanged, so existing case law applies. However, where ITA 2025 makes a substantive amendment, only the new provision governs. (General Clauses Act, 1897 Section 6; Section 536(4), ITA 2025)

Question 8

For how long will both Acts run simultaneously?

Accepted Answer

Both Acts operate in parallel from 1 April 2026. ITA 1961 provisions continue to govern all tax years beginning before 1 April 2026 — including assessments, appeals, and penalties that may stretch for years. The e-filing portal will support both Acts simultaneously. Taxpayers filing for AY 2026-27 use ITA 1961 forms; advance tax for TY 2026-27 follows ITA 2025. Both Acts coexist until all pre-2026 proceedings are resolved. (Section 536(2), ITA 2025)

Question 9

Does the fundamental obligation to discharge tax through TDS/TCS/advance tax continue?

Accepted Answer

Yes — unchanged under ITA 2025. The core obligation to pay income tax — whether by TDS, TCS, advance tax, or self-assessment tax — continues unchanged. The modes of remittance (authorised banking channels, electronic payment) remain the same. ITA 2025 preserves the existing compliance structure while streamlining language. (ITA 2025 — corresponding provisions to Sections 190–206 of ITA 1961)

Question 10

Which TDS provisions apply for payments made in April 2026 onwards?

Accepted Answer

ITA 2025 — Section 393 (TDS), Section 394 (TCS). TDS on payments (salary, contract, professional fees, etc.) made on or after 1 April 2026 is governed by ITA 2025. All TDS entries in Section 393 Table replace individual ITA 1961 sections (192, 194C, 194J, etc.). TDS certificates in Form 130 (replaces Form 16), quarterly returns in Form 138 (replaces 24Q/26Q). TCS collections follow Section 394. (Section 393, 394, ITA 2025)

Question 11

Which Act governs the final advance tax instalment paid before 1 April 2026?

Accepted Answer

ITA 1961. Advance tax liability is linked to the tax year to which the income pertains, not the date the new Act commences. Since this instalment relates to FY 2025-26 income and is paid before 1 April 2026, ITA 1961 governs. The instalment schedule (15 Jun/Sep/Dec/Mar) and thresholds remain unchanged. (Section 208–211, ITA 1961)

Question 12

Which Act governs advance tax for income earned from April 2026?

Accepted Answer

ITA 2025 — Sections 404–408. Income earned during FY 2026-27 is chargeable under ITA 2025. Advance tax for TY 2026-27 follows Section 404 (threshold: Rs. 10,000 — unchanged). Instalment schedule and rates remain the same. Presumptive taxation assessees pay the entire advance tax by 15 March per Section 408(2). (Section 404, 408, ITA 2025)

Question 13

If advance tax for AY 2026-27 is short-paid, which Act governs the interest?

Accepted Answer

ITA 1961 — Sections 234B, 234C. The obligation to pay advance tax arose during FY 2025-26 under ITA 1961. The default occurred before the new Act commenced. Interest for default (Section 234B) and deferment (Section 234C) at 1% per month is governed by ITA 1961. Under ITA 2025, the corresponding provisions are Section 424 and Section 425 with identical rates. (Sections 234B, 234C, ITA 1961; Sections 424, 425, ITA 2025)

Question 14

The payment is made after ITA 2025 commenced — which Act applies?

Accepted Answer

ITA 1961 — Section 140A. Self-assessment tax is a mode of discharging tax liability. The applicable law is determined by the year of income, not the date of payment. Since the income pertains to FY 2025-26, Section 140A of ITA 1961 governs. Taxpayers must select AY 2026-27 (not TY 2026-27) on the portal. (Section 140A, ITA 1961)

Question 15

What happens to unutilised MAT/AMT credit after 1 April 2026?

Accepted Answer

Continues under ITA 2025. Unutilised MAT credit (Section 115JAA) or AMT credit (Section 115JD) carried forward under ITA 1961 is treated as eligible credit under ITA 2025. Can be set off for TY 2026-27 onwards, subject to the 15-year carry-forward limit from the year the credit first became available. (Section 536(2), ITA 2025; Sections 115JAA, 115JD, ITA 1961)

Question 16

Can the department recover old tax dues after 1 April 2026?

Accepted Answer

Yes — recoverable under ITA 2025 machinery. Any unpaid tax demand raised under ITA 1961 remains payable. The department may use recovery mechanisms under ITA 2025 to collect old arrears. Tax recovery certificates, attachment orders, and garnishee orders issued under ITA 1961 remain valid and enforceable. (Section 536(2), ITA 2025)

Question 17

What happens to refund claims arising before 1 April 2026?

Accepted Answer

Rights preserved — refund still claimable. Rights and benefits that arose under ITA 1961 continue to exist. If entitled to a refund under ITA 1961 for any pre-April 2026 tax year, the entitlement survives. Excess TDS refund claims must be filed in Form 26B within 2 years from the end of the FY in which tax was deductible, processed under ITA 1961 provisions. (Section 536(2)(a), ITA 2025)

Question 18

Which Act and which forms apply for AY 2026-27 returns?

Accepted Answer

ITA 1961 — existing ITR forms (ITR-1 to ITR-7). Income of FY 2025-26 is filed for AY 2026-27 under ITA 1961 provisions, even though filing occurs after 1 April 2026. The ITR forms (ITR-1 through ITR-7) prescribed under ITA 1961 will be used. Taxpayers must select AY 2026-27 on the portal. Due dates: 31 Jul / 31 Aug / 31 Oct / 30 Nov 2026 depending on the category of assessee. (Section 139, ITA 1961; Section 536(2)(c), ITA 2025)

Question 19

Which Act governs revision of AY 2026-27 return filed in 2026?

Accepted Answer

ITA 1961 — Section 139(5). Revised return for AY 2026-27 is governed by ITA 1961, filed before 31 March 2027 (as proposed in Finance Bill 2026) or before completion of assessment, whichever is earlier. The fact that revision occurs after 1 April 2026 does not change the applicable Act. (Section 139(5), ITA 1961)

Question 20

What is the last date and penalty for belated filing of AY 2026-27?

Accepted Answer

ITA 1961 — Section 139(4), Section 234F. Belated return for AY 2026-27 may be filed until 31 December 2026, or before completion of assessment, whichever is earlier. Late fee: Rs. 1,000 (if total income ≤ Rs. 5 lakh) or Rs. 5,000 (otherwise) under Section 234F of ITA 1961. (Section 139(4), 234F, ITA 1961)

Question 21

Can ITR-U be filed under ITA 1961 after the new Act commences?

Accepted Answer

Yes — ITA 1961, Section 139(8A). Updated return for AY 2026-27 can be filed within the time prescribed under Section 139(8A) of ITA 1961, even after the new Act is in force. Additional tax is payable under Section 140B. Under ITA 2025, the corresponding provision is Section 263(6) — applicable only from TY 2026-27. (Section 139(8A), ITA 1961; Section 263(6), ITA 2025)

Question 22

Can these be filed after 1 April 2026?

Accepted Answer

No — time limit expired before 1 April 2026. The time for filing revised or belated returns for AY 2025-26 or earlier expires before 1 April 2026. These cannot be filed after that date. However, updated returns (ITR-U) may still be filed within the time limits prescribed under Section 139(8A) of ITA 1961. (Section 139(4), (5), (8A), ITA 1961)

Question 23

When will new ITR forms be available and what are the due dates?

Accepted Answer

ITA 2025 — Section 263. New ITR forms under Income-tax Rules 2026 will be notified before due dates. Section 263 unifies original, belated, revised, and updated return provisions. Due dates: 31 Jul / 31 Aug / 31 Oct / 30 Nov 2027. Belated: within 9 months from TY end. Revised: within 12 months. Updated (ITR-U): within 48 months from end of FY succeeding the TY. (Section 263, ITA 2025)

Question 24

How to avoid choosing the wrong year on the e-filing portal?

Accepted Answer

Both options available simultaneously. The portal will support both Acts concurrently. For self-assessment tax for FY 2025-26 paid in June 2026: select AY 2026-27. For advance tax on income from April 2026–March 2027: select TY 2026-27. Incorrect selection will misdirect tax credit. The Government is implementing measures for seamless dual-track operation. (CBDT FAQ on Interplay and Transition)

Question 25

Which forms to use for new PAN applications?

Accepted Answer

ITA 2025 — Forms 93, 94, 95, 96. Old Form 49A/49AA is split into 4 category-specific forms: Form 93 (Indian individuals), Form 94 (Indian companies/entities), Form 95 (non-citizen individuals), Form 96 (entities incorporated outside India). Existing PAN numbers remain valid — new forms are only for fresh applications from 1 April 2026. (Income-tax Rules, 2026)

Question 26

Has the TAN application form changed?

Accepted Answer

ITA 2025 — Forms 134, 135. Old Form 49B is split into: Form 134 (Government entities, with AIN and PAO/ZAO/DTO/CDDO certificate) and Form 135 (all other entities — individuals, HUF, firms, companies, etc.). Existing TAN numbers remain valid. (Income-tax Rules, 2026)

Question 27

Can old Forms 15G and 15H be used after 1 April 2026?

Accepted Answer

ITA 2025 — Section 393(6), Form 121. From TY 2026-27, both Form 15G and Form 15H are merged into a single unified Form 121. A single UIN (Unique Identification Number) is allotted per PAN per tax year, eliminating duplication across multiple payers. Old forms are invalid for TY 2026-27 declarations. Eligibility criteria remain the same. (Section 393(6), ITA 2025; Income-tax Rules, 2026)

Question 28

Does a certificate issued under Section 197 of ITA 1961 remain valid?

Accepted Answer

Yes — if issued for TY 2026-27 receivables. A lower/nil withholding certificate issued under Section 197 of ITA 1961 remains valid for payments on or after 1 April 2026, provided it was issued for projected receivables of TY 2026-27. New applications use Form 128 under ITA 2025. The application process continues through TRACES/e-filing portal. (Section 395(1), ITA 2025; Section 197, ITA 1961)

Question 29

Which audit form applies?

Accepted Answer

ITA 1961 forms for AY 2026-27; Form 26 for TY 2026-27. FY 2025-26 (AY 2026-27): Use existing Forms 3CA/3CB/3CD under Section 44AB of ITA 1961. Due date: 30 Sep 2026. TY 2026-27: Use unified Form 26 under Section 63 of ITA 2025, merging all three old forms. Due date: 30 Sep 2027. Audit thresholds are unchanged (Rs. 1 Cr / Rs. 10 Cr for business; Rs. 50 Lakhs for profession). (Section 44AB, ITA 1961; Section 63, ITA 2025)

Question 30

Which forms apply for remittances made on or after 1 April 2026?

Accepted Answer

ITA 2025 — Form 145 (replaces 15CA), Form 146 (replaces 15CB). Remittances before 31 March 2026: old Form 15CA/15CB remain valid. From 1 April 2026: use Form 145 (4 parts, with Part B eliminating need for CA certificate if AO certificate obtained) and Form 146 (with UDIN for real-time verification via ICAI API). Thresholds remain similar. For remittance in April 2026 for a liability accrued in Feb 2026 — procedural forms follow ITA 2025, but taxability follows ITA 1961. (Section 397(3)(d), ITA 2025; Rule 220, IT Rules 2026)

Question 31

Which form for claiming relief under Section 89/Section 157?

Accepted Answer

Form 10E for AY 2026-27; Form 39 from TY 2026-27. For AY 2026-27 (income of FY 2025-26): use Form 10E under Section 89 of ITA 1961. For TY 2026-27 onwards: use Form 39 under Section 157 of ITA 2025, which features auto-population, real-time validations, and uniform computation tables for salary arrears, gratuity, pension, and retrenchment compensation. (Section 89, ITA 1961; Section 157, ITA 2025)

Question 32

What about transactions without PAN after 1 April 2026?

Accepted Answer

ITA 2025 — Forms 97, 98. Form 60 is replaced by Form 97 (declaration by person without PAN). Form 61 is replaced by Form 98 (half-yearly statement by the receiving entity). Filing periods: Apr–Sep due 31 Oct; Oct–Mar due 30 Apr of next FY. Some changes in the scope of specified transactions under Rule 159(2) vs old Rule 114B/114BA. (Rule 159(2), Income-tax Rules, 2026)

Question 33

Which Act governs reassessment already initiated under Section 147/148?

Accepted Answer

ITA 1961. Section 536(2)(c) expressly provides that ITA 1961 continues for pending proceedings. If notice under Section 148A(1) was issued before 1 April 2026, the entire sequence — order under 148A(3) and notice under 148 — continues under ITA 1961, even if completed after 1 April 2026. Subject to time limits under Section 149. (Section 536(2)(c), ITA 2025; Sections 147–151, ITA 1961)

Question 34

Can the department initiate new reassessment for AY 2022-23 after 1 April 2026?

Accepted Answer

Yes — under ITA 1961. Even after 1 April 2026, fresh assessment, reassessment, rectification, penalty, and revision proceedings can be initiated under ITA 1961 for AY 2026-27 and earlier, if conditions under ITA 1961 (including time limits under Section 149) are satisfied. Approval under Section 151 hierarchy continues to apply. (Section 536(2)(c), ITA 2025; Section 149, 151, ITA 1961)

Question 35

What are the new reassessment time limits?

Accepted Answer

ITA 2025 — Sections 279–286. For TY 2026-27 onwards: Show-cause notice (Sec 281) within 4 years (or 6 years if escaped income ≥ Rs. 50 lakhs). Reassessment notice (Sec 280) within 4 years 3 months (or 6 years 3 months). No notice within 1 year from end of TY. AO must issue show-cause notice, consider reply, and pass reasoned order with prior approval of Additional/Joint Commissioner before issuing Sec 280 notice. (Sections 279–286, ITA 2025)

Question 36

Can the AO simultaneously conduct reassessment for AY 2024-25 and assessment for TY 2026-27?

Accepted Answer

Yes — independent proceedings. These are independent proceedings under two different Acts for two different income periods. The department can run parallel proceedings. ITA 1961 governs AY 2024-25 reassessment; ITA 2025 governs TY 2026-27 assessment. (Section 536(2)(c), ITA 2025)

Question 37

How has the TDS framework been reorganized?

Accepted Answer

ITA 2025 — Section 393 (consolidated TDS table). ITA 2025 consolidates 38+ individual TDS sections (192, 194A, 194C, 194H, 194I, 194J, etc.) into a single Section 393 with a tabular format. This eliminates overlapping provisions and uncertainty about which section applies. TCS is similarly consolidated under Section 394. The substantive rates and thresholds are broadly unchanged. (Section 393, 394, ITA 2025)

Question 38

Which form for salary TDS certificates issued after 1 April 2026?

Accepted Answer

ITA 2025 — Form 130. For TY 2026-27 salary (paid on or after 1 April 2026): TDS under Section 393 Table entry for salary. TDS certificate in Form 130 (replaces Form 16). Quarterly TDS return in Form 138 (replaces 24Q). For FY 2025-26 salary: Form 16 and 24Q under ITA 1961 continue for Q1–Q4 of that year. (Section 393, ITA 2025; Income-tax Rules, 2026)

Question 39

Which forms for quarterly TDS filing in FY 2025-26 vs TY 2026-27?

Accepted Answer

ITA 1961 for FY 2025-26; ITA 2025 for TY 2026-27. FY 2025-26 (Q1 Apr–Jun 2025 through Q4 Jan–Mar 2026): File 24Q/26Q/27Q/27EQ under ITA 1961. TY 2026-27 (Q1 Apr–Jun 2026 onwards): File Form 138 under ITA 2025. The e-filing portal will support both sets of forms simultaneously. (ITA 1961 rules; Income-tax Rules, 2026)

Question 40

Does TCS continue under ITA 2025?

Accepted Answer

ITA 2025 — Section 394. All TCS collections from 1 April 2026 follow Section 394 of ITA 2025 (replacing Section 206C). Entry in ERP systems must be updated to cite Section 394. TCS rates and thresholds are broadly unchanged. TCS certificates and returns will use new form numbers prescribed under IT Rules 2026. (Section 394, ITA 2025)

Question 41

Which law applies to appeals for AY 2024-25 and earlier?

Accepted Answer

ITA 1961. All pending appeals, writ petitions, and proceedings before CIT(A), ITAT, High Court, or Supreme Court for AY 2025-26 and earlier continue under ITA 1961 per Section 536(2)(c). Cite ITA 1961 sections in all briefs, grounds of appeal, and submissions. Do not use ITA 2025 section numbers for these proceedings. (Section 536(2)(c), ITA 2025)

Question 42

If AO passes order for AY 2024-25 in May 2026, which Act governs the appeal?

Accepted Answer

ITA 1961. The appeal relates to a proceeding for a tax year beginning before 1 April 2026. Even though filed after commencement, Section 536(2)(c) ensures ITA 1961 governs. Appeal limitations, grounds, procedures, and section references — all follow ITA 1961. (Section 536(2)(c), ITA 2025)

Question 43

Do existing dispute resolution mechanisms continue?

Accepted Answer

Yes — treated as made under ITA 2025. DRP, Advance Ruling, and Safe Harbour provisions under ITA 1961 are treated as made under corresponding ITA 2025 provisions. Pending DRP proceedings for pre-April 2026 AYs continue under ITA 1961. New applications from TY 2026-27 follow ITA 2025 sections. (Section 536(2), ITA 2025)

Question 44

Can losses computed under ITA 1961 be set off under ITA 2025?

Accepted Answer

Yes — carry-forward continues. Business losses, capital losses, speculation losses, and other losses computed under ITA 1961 and eligible for carry-forward continue to be available for set-off under ITA 2025 provisions, subject to the original carry-forward period (8 years for business losses, indefinite for capital losses from house property, etc.). The losses retain their character. (Section 536(2), ITA 2025; Sections 70–80, ITA 1961)

Question 45

How are investment deductions treated across the transition?

Accepted Answer

ITA 1961 for AY 2026-27; ITA 2025 for TY 2026-27. Deductions for investments/payments made during FY 2025-26 are claimed under ITA 1961 sections (80C, 80D, 80G, etc.) in the AY 2026-27 return. For TY 2026-27, the corresponding ITA 2025 provisions apply. Ongoing commitments (e.g., ELSS lock-in, insurance premiums) continue to qualify under the corresponding new Act provisions if conditions are substantially the same. (Sections 80C–80U, ITA 1961; corresponding ITA 2025 sections)

Question 46

Does unabsorbed depreciation from ITA 1961 carry forward?

Accepted Answer

Yes — indefinite carry-forward continues. Unabsorbed depreciation computed under Section 32 of ITA 1961 can be carried forward indefinitely (no time limit) and set off under ITA 2025 provisions. The Written Down Value (WDV) of assets as on 31 March 2026 becomes the opening WDV under ITA 2025. (Section 536(2), ITA 2025; Section 32, ITA 1961)

Question 47

Which Act determines residential status for FY 2026-27?

Accepted Answer

ITA 2025. Residential status for income earned from 1 April 2026 is determined under ITA 2025 provisions. The criteria (182-day / 60-day rules) are substantively unchanged. For FY 2025-26 income (AY 2026-27), residential status is determined under ITA 1961. DTAA provisions and treaty override principles continue. (ITA 2025; Section 6, ITA 1961)

Question 48

Which TDS provisions apply for NRI payments made after commencement?

Accepted Answer

ITA 2025 — Section 397 (corresponding to Section 195). For payments to NRIs made on or after 1 April 2026: Section 397 of ITA 2025 applies. Form 145/146 (replacing 15CA/15CB) for foreign remittances. DTAA rates continue to apply where beneficial. For remittance in April 2026 for a liability accrued in Feb 2026 — procedural compliance under ITA 2025, but taxability under ITA 1961. (Section 397, ITA 2025; Section 195, ITA 1961)

Question 49

Which capital gains rules apply for NRI property transactions?

Accepted Answer

ITA 1961 for FY 2025-26 transactions; ITA 2025 for TY 2026-27 onwards. For property sold before 31 March 2026: capital gains computed under ITA 1961 (including indexation). For property sold on or after 1 April 2026: ITA 2025 provisions apply. DTAA relief continues in both cases. TDS on NRI property transactions follows the Act applicable at the time of payment/credit. (Sections 45–55, ITA 1961; corresponding ITA 2025 sections)

Question 50

Which penalty regime applies for defaults under ITA 1961?

Accepted Answer

ITA 1961. Penalty proceedings for defaults in AY 2025-26 and earlier are governed by ITA 1961 — including penalties under Sections 270A (underreporting), 271(1)(c) (concealment), 271B (failure to get audit), 271F (failure to file). Even if penalty proceedings are initiated after 1 April 2026, ITA 1961 applies for pre-commencement defaults. (Section 536(2)(c), ITA 2025)

Question 51

Which Act governs prosecution for offences committed before 1 April 2026?

Accepted Answer

ITA 1961. Prosecution for offences committed under ITA 1961 (failure to file, tax evasion, etc.) continues under ITA 1961 provisions. Pending prosecution proceedings are not affected by the repeal. For offences committed on or after 1 April 2026, ITA 2025 applies. (Section 536(2), ITA 2025; Sections 275A–280D, ITA 1961)

Question 52

Do pending settlement/amnesty applications continue?

Accepted Answer

Yes — rights preserved under savings clause. Applications under Vivad Se Vishwas or other settlement schemes filed before 1 April 2026 continue to be valid. Rights, obligations, and benefits under these schemes are preserved by the savings clause of Section 536. Settlements already concluded remain binding. (Section 536(2)(a), ITA 2025)

Question 53

Which Act governs TP proceedings?

Accepted Answer

ITA 1961 for pre-April 2026 tax years. Transfer pricing assessments, appeals, and APA (Advance Pricing Agreements) for AY 2025-26 and earlier continue under ITA 1961. Existing APAs remain valid and are treated as made under corresponding ITA 2025 provisions. MAP (Mutual Agreement Procedure) proceedings continue under applicable DTAA. (Section 536(2)(c), ITA 2025; Sections 92–92F, ITA 1961)

Question 54

Which Act governs search proceedings initiated before 1 April 2026?

Accepted Answer

ITA 1961. Search and seizure operations conducted under Section 132 of ITA 1961 before 1 April 2026, and all consequential proceedings (assessments under Section 153A/153C, block assessments, undisclosed income, penalties) continue under ITA 1961. For searches conducted on or after 1 April 2026, ITA 2025 applies. (Section 536(2)(c), ITA 2025; Sections 132, 153A, 153C, ITA 1961)

Question 55

Does AIS continue under ITA 2025?

Accepted Answer

Yes — evolves into Form 168. AIS continues for tax periods under ITA 1961 (up to AY 2026-27). From TY 2026-27 onwards, AIS is replaced by Form 168 as the evolved Annual Information Statement under ITA 2025. The SFT (Statement of Financial Transactions) reporting obligations continue. (ITA 2025; Income-tax Rules, 2026)

Question 56

Which are the applicable tax slabs under ITA 2025?

Accepted Answer

ITA 2025 — Section 202. Section 202 of ITA 2025 (replacing Section 115BAC) is the default regime. Updated slabs: Nil up to Rs. 4L, 5% (4–8L), 10% (8–12L), 15% (12–16L), 20% (16–20L), 25% (20–24L), 30% (above 24L). Standard deduction of Rs. 75,000 for salaried/pensioners. Old regime available only on explicit opt-in for eligible assessees. (Section 202, ITA 2025)

Applicability — Which Law Applies?

General Philosophy of Transition

Tax Payments, Collection & Refunds

Filing of Income Tax Returns

Forms & Compliance Statements

Reassessment of Escaped Income

TDS & TCS Compliance

Appeals, Revision & Dispute Resolution

Set-off, Carry Forward & Deductions

Non-Resident Indians (NRIs)

Miscellaneous & Penalties