No Need to File Two ITRs for AY 2026-27 and Tax Year 2026-27, Clarifies Income Tax Dept Using Kar Setu

About 60 years old, the Income Tax Act 1961 has been replaced by the new Income Tax Act 2025, effective from April 01, 2026. The earlier concepts of ‘Assessment Year’ and ‘Financial Year’ have been replaced by ‘Tax Year’. Because of these major changes in the income tax rules, taxpayers are confused about whether they are required to file their income tax return (ITR) for the Assessment Year 2026-27 and another Tax Year 2026-27 for the income earned during the Financial Year 2025-26.

Recently, the Income Tax Department released a guideline book called Kar Setu, through which the department has replied to all the questions of the taxpayers who are facing difficulties in filing their ITR for the Financial Year 2025-26 (transition year).

On the question of whether the taxpayers are required to file two ITRs for AY 26-27 and TY 26-27 during the transition year of FY 26-27, using the Kar Setu document, the income tax department has stated that the taxpayers will need to file an ITR for the Tax Year 2026-27 after the end of the tax year. Those who earned income during the period between April 1, 2025, and March 31, 2026, will need to file their returns under the existing system as Assessment Year (AY) 2026-27, and the income earned between April 1, 2026, and March 31, 2027, will need to be disclosed under the new Tax Year (TY) 2026-27 framework.

The due date for filing an ITR will depend upon the category of the taxpayer; it can be July 31, August 31, October 31 or November 30, 2026.

The income tax department has clarified that “In simple words, the obligation to file the return for the Tax Year 2026-27 will arise after the end of the Tax Year. ITR forms, etc., for the Tax Year 2026-27 will be notified by the Government well before the due dates.”