Income tax department clarifies filing requirements under new tax year system

Taxpayers will not need to file two income tax returns following the new law's implementation. The Income Tax Department clarified that income earned from April 1, 2025, to March 31, 2026, will be filed under Assessment Year 2026-27, not a new Tax Year. The new Tax Year system, replacing Assessment Years, will apply to income earned from April 1, 2026, onwards, with the first return filed after March 31, 2027.