India’s AY 2026-27 ITR Filing Deadline: June 17 Guide

India’s new Income Tax Act 2025 came into force on April 1, 2026, creating a transition year for taxpayers. For Assessment Year 2026-27, filing deadlines depend on income type and whether returns are audited. The Income Tax Department has consolidated return provisions into Section 263, maintaining the same filing structure as the old Act. Taxpayers must file by the correct deadline to avoid penalties and interest charges.

Which Act Applies to Your 2026-27 Return

Income earned during FY 2025-26 is filed under Assessment Year 2026-27 using the Income Tax Act 1961, not the new Act. Even though filing occurs after April 1, 2026, the return relates to a tax year that began before that date. The new Act 2025 applies only to income earned from April 1, 2026 onwards. Taxpayers do not file two returns during the transition year. The filing framework remains identical to the old Act.

Choosing the Correct ITR Form

Seven ITR forms exist for AY 2026-27: ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, and ITR-7. ITR-1 (Sahaj) is for resident individuals with income up to ₹50 lakh from salary, pension, or up to two house properties. ITR-1 now permits small long-term capital gains up to ₹1.25 lakh under Section 112A with no carry-forward losses. Filing the wrong form results in a defective return notice and delays refund processing. ITR forms will be available on the e-filing portal well before the due date.

New Form 121 Replaces TDS Exemption Forms

Form 121 is the unified self-declaration form effective April 1, 2026, replacing the old Form 15G and Form 15H. Resident individuals and Hindu Undivided Families (HUFs) use Form 121 to prevent TDS deduction on interest, dividends, and other income by declaring total income below the taxable limit. PAN is mandatory for Form 121. Submission without a valid PAN renders the declaration invalid, and the payer must deduct TDS at 20% regardless of income level. Check the tax calendar for all filing deadlines.

TDS and Tax Payment Rules Remain Unchanged

Tax obligations for TDS, TCS, advance tax, and self-assessment tax continue under the new Act 2025 without policy changes. TDS rates and monetary thresholds remain identical to the old Act. The new Act consolidates TDS sections 192-194T into two sections: Section 392 (salary payments) and Section 393 (other payments like commission, rent, and property transfers). Tax payments are made through authorised banking channels and electronic payment mechanisms. Challans under the new Act are filed by Tax Year, not Assessment Year.

Final Thoughts

For AY 2026-27, file your ITR under the Income Tax Act 1961 by the deadline matching your income type. Select the correct ITR form to avoid defective return notices and refund delays. Ensure PAN is valid before submitting Form 121 for TDS exemption.

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