ITR Filing 2026: Transitional Applicability of the 1961 Act and the 2025 Code

The 2026 return-filing cycle is governed by a transitional statutory bifurcation: income earned during FY 2025–26 and reported in AY 2026–27 continues to be assessed under the Income-tax Act, 1961, notwithstanding the commencement of the Income-tax Act, 2025 from 1 April 2026, since the new enactment operates prospectively in relation to income of FY 2026–27 onwards, thereby preserving legal continuity, avoiding interpretive overlap, and ensuring that the repeal of the 1961 regime does not disturb pending, prior-period, or already-accrued tax positions within the extant assessment framework.