Introduction of Tax Year under the Income Tax Act, 2025
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.