Overview
Income tax is levied on income earned by individuals, HUFs, firms, LLPs, companies and trusts. Compliance involves correct classification of income, computation of tax, payment of advance tax, timely filing of returns, and responding to notices and assessments.
The Income-tax Act, 2025 has replaced the Income-tax Act, 1961 from 1 April 2026 (Tax Year 2026-27 onwards). It introduces the concept of a "tax year", renumbers most provisions and simplifies language, while earlier years continue to be governed by the 1961 Act. Both laws therefore apply side by side for some time.
Who needs this service
Legal and regulatory framework
- Income-tax Act, 2025 and Income-tax Rules made under it (Tax Year 2026-27 onwards)
- Income-tax Act, 1961 for assessment years up to 2026-27 and pending proceedings
- Finance Acts and CBDT circulars and notifications
Scope of services
Return filing
- Income tax returns for all categories of taxpayers
- Computation of total income and tax liability under the old and new tax regimes
- Reconciliation with AIS, TIS and Form 26AS before filing
Advance tax and planning
- Estimation of advance tax and instalment schedules
- Tax planning within the law: regime choice, deductions, timing of capital gains
- Tax impact of business decisions and investments
Capital gains
- Computation on shares, mutual funds, property and unlisted securities
- Exemption planning and reinvestment options
- Reporting of foreign assets and income
Notices, assessments and appeals
- Replies to intimations, defective return notices and mismatch notices
- Faceless scrutiny and reassessment proceedings
- Appeals before the Commissioner (Appeals) and the Income Tax Appellate Tribunal
- Rectification and refund follow-ups
Transition to the 2025 Act
- Mapping of old sections to new provisions
- Review of carried-forward losses, pending refunds and ongoing proceedings
How the engagement works
- Tax profileUnderstanding sources of income, residential status and past filings.
- Data and reconciliationCollection of documents and matching with AIS / 26AS.
- ComputationComputation of income and tax, with regime comparison where relevant.
- FilingReturn filed and verified; acknowledgement shared.
- Follow-upTracking of processing, refunds and any notices.
Documents typically required
Key forms and due dates
| Item | Timeline |
|---|---|
| Advance tax | 15 June (15%), 15 September (45%), 15 December (75%), 15 March (100%) |
| Return: non-audit cases | 31 July |
| Return: audit cases | 31 October |
| Return: transfer pricing cases | 30 November |
| Belated / revised return | 31 December |
Deliverables
- Computation of income
- Filed return and acknowledgement
- Written replies to notices and submissions in proceedings
- Appeal documentation
The scope of each engagement is agreed in writing and depends on the nature, size and regulatory requirements of the entity.
Frequently asked questions
What is the Income Tax Act, 2025?
The new income-tax law that replaces the Income-tax Act, 1961 from 1 April 2026. It uses a single "tax year" instead of previous year and assessment year, and reorganises the provisions into simpler language.
Does the old Act still matter?
Yes. Returns, assessments and appeals for FY 2025-26 and earlier years continue under the 1961 Act.
Which tax regime should I choose?
It depends on your income and deductions. The new regime has lower slab rates with fewer deductions; the old regime allows deductions such as those for investments and housing loan interest. A computation under both shows which is lower.
What if I miss the return due date?
A belated return can be filed up to 31 December with a late fee and interest. Certain losses cannot be carried forward if the return is filed late.
What should I do if I receive a notice?
Read the notice section and response date carefully, check it against your filed return and AIS, and respond on the portal within the time allowed.