The Income Tax Department has introduced new challans from April 1, 2026 under the Income Tax Act 2025, replacing the AY with the TY system and simplifying tax payments and reporting.
Kashish Bhardwaj | Apr 11, 2026 |
Shift from AY to TY: Understanding New Challans Under Income Tax Act 2025
The Income Tax Department has executed new challans on the e-filing portal, effective from April 1, 2026, which are prepared as per the Income Tax Act, 2025. The main objective of these changes is to enable taxpayers to select the relevant year, report payments, and make the process of tax payment simpler and more systematic.
The change is the introduction of the concept of Tax Year (TY) instead of Assessment Year (AY). Now, taxpayers pay the payments related to income after April 1, 2026, which will be made under Tax Year 2026-27. Accordingly, options have also been given in the new challans, making it easier to select the correct year.
According to the Joint Secretary, BCAS, the department has issued new challan forms like ITNS 280N, 282N, and 288N. These have fewer and clearer fields than before, which will make it easier for taxpayers to fill in the information, and a facility like CRN (Challan Reference Number) has also been added for digital tracking.
However, this change has not been fully implemented immediately. Currently, a transition period is going on, in which both AY and TY systems will be used simultaneously. For example, if you file taxes in June or July 2026 for income of FY 2025-26, it will still be filed under AY 2026-27. At the same time, Tax Year 2026-27 will be applicable for income after 2026-27.
No changes have been made in old cases. For deductions (TDS) or pending tax liabilities before April 1, 2026, only the old challan and the relevant assessment year will have to be used. Earlier transactions will not be affected. There has also been a change in the rules related to TDS and TCS. Now it will be necessary to update the mention of the relevant section 393 (TDS) or section 394 (TCS) under the 2025 Act in the new system. If older sections (such as 194C, 194J, and 194H) are used, a system error may occur. Overall, this change is a step towards modernising and simplifying the tax system. But at present, it is important to understand both AY and TY and choose the right option so that no mistake is made while filing the return.
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