New Income Tax Rules From April 1, 2026, STT Raised To 0.15% & ITR Deadline Extended To Aug 31

New Delhi: Several important changes in India’s tax system will come into effect from April 1, 2026. The new Income-tax Act, 2025 will replace the Income-tax Act, 1961, which has been in place for more than 60 years. The government says the new law uses simpler language and aims to make the tax system easier to understand and follow.

Tax experts say the new framework also changes timelines, tax procedures and rules affecting individuals, businesses and investors.

‘Tax Year’ Concept Introduced

One major change in the new law is the introduction of the concept of a 'Tax Year'. This will replace the earlier system of 'previous year' and 'assessment year'.

Under the new system, income earned and taxes paid will fall under one single period called the Tax Year. Experts say this step will make the tax process simpler and easier for taxpayers.

Income Tax Slabs Remain Same

The government has not changed the existing income tax slab rates for individuals. The tax rates under both the old tax regime and the new concessional tax regime will remain the same. This means there will be no change in personal tax burden for most taxpayers.

New ITR Filing Deadlines

The government has also revised the deadlines for filing income tax returns.

Individuals filing simple returns such as ITR-1 and ITR-2 will continue to have a July 31 deadline. However, taxpayers engaged in business or profession whose accounts do not require audit will now have time until August 31 instead of July 31.

Companies and taxpayers whose accounts require audit will have an October 31 deadline, while special cases under certain provisions will have a November 30 deadline.

Revised Return Window Extended

The time limit for filing revised income tax returns has also been extended. Earlier, taxpayers could revise their return within nine months after the end of the tax year.

Under the new law, the revision window will increase to 12 months. However, a fee will apply if the return is revised after nine months. The fee will be Rs 1,000 if income is up to Rs 5 lakh and Rs 5,000 if income exceeds Rs 5 lakh.

STT And Other Tax Changes

The government has also increased Securities Transaction Tax (STT) on futures and options trading. The STT on sale of options will rise from 0.10 percent to 0.15 percent, while futures STT will increase from 0.02 percent to 0.05 percent.

Tax Collected at Source (TCS) rates have also been revised on several transactions. At the same time, employer-paid travel between home and office will not be treated as a taxable benefit.

Overall, the Income-tax Act, 2025 marks a major change in India’s tax system and will take effect from April 1, 2026.