The Income Tax Act, 2025 has introduced the concept of “Tax Year” from 1-Apr-2026.
The Income Tax Act, 2025 has been enacted and has come into effect from 01-April-2026. Under this Act, the concept of “Tax Year” has been introduced, which is defined u/s 3(1) as “the twelve months period of the financial year commencing on the 1st April”.
However, in the case of a business or profession newly set up, or a source of income newly coming into existence in any financial year, the tax year shall be the period beginning with—
(a) the date of setting up of such business or profession; or
(b) the date on which such source of income newly comes into existence,
and ending with the said financial year.
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