Prepare Early, Stay Accurate, and File ITR Smoothly for FY 2025–26
Book Tax Experts Today
Starting 1 April 2026, several important income tax changes will come into effect in India. These changes are part of a broader shift toward a simplified, digital-first tax system under the new Income Tax Act, 2025.
If you're a salaried employee, freelancer, business owner, or investor, understanding these updates is critical for effective tax planning in FY 2026–27.
The biggest update is the introduction of the new Income Tax Act, 2025, replacing the decades-old 1961 law.
For FY 2026–27, tax slabs remain unchanged.
Thanks to an increased rebate:
Standard deduction: ₹75,000 (new regime)
Salary ₹12 lakh → taxable income becomes ₹11.25 lakh → eligible for rebate
A major conceptual change:
Budget 2026 introduces major rationalisation of TCS rates.
Key updates affecting investors:
Banks and institutions will now:
Revised return deadline extended from 9 months to 12 months
31 March (next year)
Additional fee applies after 31 December
This gives taxpayers more time to correct mistakes.
STT rates have been increased, especially impacting traders.
| Transaction | Old | New |
|---|---|---|
| Options (premium) | 0.1% | 0.15% |
| Options (intrinsic) | 0.125% | 0.15% |
| Futures | 0.02% | 0.05% |
Earlier:
From April 2026:
This aligns taxation with the nature of investments.
If purchased from the secondary market:
This is important for gold investors.
Relief for buyers purchasing property from NRIs:
Earlier:
From April 2026:
If implemented, these rules will further enhance deductions under the old regime.
This could make the old regime more attractive for some taxpayers.
Includes:
The new system emphasizes:
Must monitor:
“The 2026 tax changes clearly signal a shift toward the new tax regime. Most taxpayers with income under ₹15 lakh will benefit from simplified taxation and lower compliance burden.”
From April 2026, India introduces the new Income Tax Act, 2025 along with continued benefits under the new tax regime, ₹12 lakh rebate, updated reporting rules, and revised capital gains provisions.
Yes, under the new tax regime, income up to ₹12 lakh is effectively tax-free due to a rebate under Section 87A (up to ₹60,000).
The new tax regime is better for most taxpayers with fewer deductions, while the old regime suits those claiming high deductions like HRA, 80C, and home loan interest.
No, the tax slabs remain unchanged. The government has retained the same structure to provide stability.
The standard deduction is ₹75,000 under the new tax regime.
