The first question to ask about an income-tax notice in 2026 is not simply when it arrived. It is which period, law and proceeding it concerns. Businesses can be organising current-year transactions while answering questions about a much earlier return. Keeping those two tasks separate makes the transition easier to manage.
What changed on 1 April 2026?
The Income Tax Department states that the Income-tax Act, 2025 took effect on 1 April 2026. Its “tax year” terminology applies to income earned from FY 2026–27 onwards. The department also explains that earlier-year assessments and pending matters are not erased by repeal of the 1961 Act; transitional provisions govern their treatment.
That makes the period identified in a notice essential. Do not replace a section number in an older reply template merely because the reply is being prepared after April 2026. Confirm the applicable law first.
Official reference: Income Tax Department: objective and scope of the new Act · Income-tax Act, 2025 resources
Keep current-year work separate from earlier-year notices
Create two folders: one for current-year tax records and another for each open proceeding. In the proceeding folder, keep the original notice, its annexures, the relevant return, earlier replies and the latest status. Use the year printed on those documents in filenames. A useful internal register has columns for the law cited, relevant year, notice reference, issue raised, response date and person responsible.
This is an organisational recommendation, not a replacement for the department’s forms. It helps a reviewer avoid attaching a current-year ledger to a question about an older return.
A practical example
Consider a business that receives a query about income reported for an earlier assessment year while preparing records for Tax Year 2026–27. The business should first identify the older return and underlying transactions. It should then reconcile the specific difference raised in the notice, rather than preparing a broad explanation of the new Act. This hypothetical example illustrates record management; it does not decide which legal provision applies to a particular case.
Before you submit a reply
- Check the taxpayer identifier and the year shown in every attachment.
- Read the whole notice, including schedules and annexures.
- Match each requested explanation to a supporting record.
- Keep a short chronology when more than one communication exists.
- Check the actual response deadline instead of assuming the transition creates more time.
- Save the submitted version and its acknowledgement together.
If your adviser changes the legal basis of a draft, ask for a written explanation of why that provision applies to the stated period. This creates a clearer review trail.
What this update does not establish
The change in terminology alone does not establish your tax rate, filing deadline, refund entitlement or outcome in a dispute. Those questions need their own checks against the applicable law, notifications and facts. Use a separate decision note for each issue instead of treating “new Act” as a single answer to every compliance question.
Common questions
Does an earlier-year notice become invalid after April 2026?
Not merely because the new Act commenced. Check the relevant transitional provisions and the period involved.
What should I send my adviser first?
The complete notice, relevant return, annexures, earlier correspondence and response deadline.
Official sources & review note
References checked 26 September 2026. This article is general information, not case-specific tax or legal advice. Confirm subsequent notifications and the facts of your matter before acting.
Need help with your specific matter?
Bring the relevant notice, returns and supporting records so the issue can be reviewed in context.
Income-tax notice support →