ITR 2026: Do You Need To File Two Income Tax Returns Under The New Tax Year? Income Tax Department Clears Confusion

With the rollout of the New Income Tax Act, 2025 has raised many questions among the taxpayers. A major worry is whether the new “Tax Year” system starting April 1, 2026, will mean people will have to fill in two income tax returns during the transition period.

The answer is no.

The Income Tax Department has clarified that taxpayers won’t be required to file two ITRs for the same income. The new law only changes the nomenclature in the tax system, but the process of filing returns for income earned in FY 2025-26 remains exactly the same.

No, You Don’t Need To File Two Income Tax Returns

A large number of taxpayers were concerned that they would have to file one return under the old Income Tax Act, 1961, and another under the newly introduced Income Tax Act, 2025.

The Income Tax Department has played down those fears.

The department replied to a frequently asked question:
“No. The obligation to file the return for the Tax Year 2026-27 will arise after the end of the Tax Year and it is similar to the framework existing in Income Tax Act, 1961.”

Put simply, you only need to file one ITR if your income was earned between April 1, 2025, and March 31, 2026.

Which ITR Should You File This Year?

This won’t impact the current tax return you are filing because it’s for FY 2025-26, while the Income Tax Act, 2025, will be implemented from April 1, 2026.

The department has since clarified, “The ITR for income earned during FY 2025-26 will be filed for Assessment Year 2026-27 under the provisions of the Income Tax Act, 1961. Even though the filing will typically occur after April 1, 2026, the return relates to a tax year beginning before April 1, 2026 and is therefore governed entirely by the old Act.”

Taxpayers filing returns this season should use Assessment Year (AY) 2026-27 and follow the current filing procedure.

Current ITR Forms To Continue

There are no changes to the return forms for this filing season.

The Income Tax Department has said that ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 and ITR-7 will continue to be notified under the Income Tax Act, 1961 for AY 2026-27 and will be available on the e-filing portal.

Taxpayers filing for FY 2025-26 need to select AY 2026-27 as they normally would.

Why Is There So Much Confusion?

The confusion is caused by the switch to the new tax law.

Under the old system, the taxpayer had to deal with two terms – the previous year (when the income is earned) and the assessment year (when the income is assessed).

For example, your income earned in FY 2025-26 is mirrored in AY 2026-27. The Income Tax Act, 2025, replaces these two terms with a single term, “tax year,” generally defined from April 1 to March 31. It states that the reform would simplify the taxation system and make it simpler to comprehend.

When Will The New Tax Year Return Be Submitted?

The new tax year framework will apply only to income earned from 1 April 2026 onwards.

This means that:

Taxpayers are not required to file a return for the first year until after March 31, 2027, and are subject to the due dates.

So, the new law is already in effect but its return filing requirements will come into effect only for income earned from FY 2026-27 onwards.

What Is The Due Date For Filing An ITR?

The change to the new law does not alter the filing deadline for the current return.

For most individual taxpayers not liable for tax audit, the last date for filing for AY 2026-27 remains July 31, 2026, while extended due dates are available for taxpayers belonging to some categories.

What If You Miss The Deadline?

The Income Tax Act, 2025, also has a similar late filing fee structure.

According to Section 428 of the new law:

• Taxpayers with an overall income of up to Rs 5 lakh will be charged a late fee of Rs 1,000.
• The late filing fee can be Rs 5,000 for others.

However, these provisions will only apply to returns filed under the new tax year system. Returns for AY 2026-27 and earlier shall be governed by Section 234F of the Income-tax Act, 1961.

What You Should Know As A Taxpayer

The clarification from the Income Tax Department makes one thing clear: even after the introduction of the new tax year system, taxpayers don’t have to file two income tax returns.

If you are filing a return of income for FY 2025-26, please continue with the existing process for assessment year 2026-27 with existing ITR forms. This is because the new tax year will apply only to income earned from 1 April 2026 and the first return under the new system will be due in 2027.

Also Read: EPF Scheme 2026: From 3-Day PF Claims Settlement To Easier Withdrawals, Here’s What Has Changed

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